N. Guinea’s Depleted

Revenue Looking for New Tax Sources

Written for The Pacific Islands Monthly by Gordon Thomas According to the 1929-30 report of the Administration of the Mandated Territory of New Guinea to the League of Nations, at June 30, 1930, there remained in the coffers of the Treasury the unex pended balance of general revenue to the tune of £3,714. The amount of expenditure exceeding revenue for that period was £16,670, but as some £47,000 of unexpended revenue was carried forward from the 1927-28 period the Territory was still able to show a balance on the right side of the ledger.

The figures for the 1930-31 period are not yet available for public inspec tion, but it is patent the balance will be on the wrong side of the books this time.

In such cases there is only one thing to be done: Increase the reve nue. At present the method of taxa tion is from Customs duties, licenses, registration fees, native head tax, stamp duties and royalty on gold which, in 1929-30, totalled £222,687; with a further £75,654 derived from such sources as fees, harbour dues, storage, surveys and rents, with sup plementary revenue from the activ ities of the various government de partments, such as the post office, public works, public health, and other Public services, which in all bring the total revenue up to £339,642.

There is no tax on business turn over or profits, or individual incomes, and the salaried man goes untouched.

The big firms and importers pass on the amount of their import tax to the consumers—naturally—and thus es cape taxation. The professional man amasses a small fortune in fees and has no fear of the income tax man knocking at the door.

It is the primary producer, the planter, the miner and the trader— who contributes chiefly to the reve nue. He purchases goods in large quantities and thus pays the greater share of the importers’ duties; he ex ports his copra and his gold, on which export duty and royalty is collected: his licenses are numerous (dynamite, fishing, gun, trading and recruiting) and he shoulders the bulk of the in denture labour fees, survey charges and hospital fees.

And the primary producer—more especially the planter and the trader —is having the most difficult problems to face at the present time, as we all know.

What fairer method, therefore, could be adopted than a tax on pro fits derived by the commercial firms, the importers and the professional men, and last, but by no means least, the absentee land-owner! Of these latter, many of them domiciled good ness knows where, are the ostensible successful tenderers for the old Ger man properties from the Expropri ation Board. The big commercial firms act as agents for men whose interests run over a hundred thous and pounds and yet have never even set eyes on their properties! Surely such casual interest only shows they are moneyed owners who can well afford to be taxed; and fortunate they are that their money is invested in New Guinea and not Australia.

Such a suggestion is bound to meet with opposition from the interests concerned. But the money has to be raised somehow, and the primary pro ducer—the dinkum planter who lives on his place—is not the cow to be milked these days.