Fiji Taxation

Residential Charge Down—lncome Tax Up

THE principal business transacted by the Legislative Council of Fiji, dur ing its session, which commenced on May 17, was an alteration in the basis of personal taxation.

Several months ago, the Council raised the residential tax from £1 to 25/- per person as part of a plan for providing for increased defence expenditure. At the same time, there was a 50 per cent, in crease in the Port and Customs service tax on imports: while the income tax on individuals was raised from 1/- to 1/3 in the £, and on companies from If- to 1/6 in the £.

The Governor has since decided that the increase in the residential tax was likely to prove an oppressive burden on the poorest classes. Accordingly, it was de cided to revert to a residential tax of £1 per head per annum. This represents a loss of about £5,800 p.a. in revenue. To, compensate for this, the exemptions’ hitherto enjoyed by Fiji residents in re lation to income tax have been lowered.

Married men with less than £450, and single men with less than £2OO per annum, are still free from the tax.

As the Colony of Fiji still enjoys large surpluses in its budgets, Mr. Alport Barker made a strong pJea to the Gov ernment that the proposed income tax should not be imposed immediately, and he moved an amendment to the Bill, providing that it should not come into operation for four months. The amend ment was defeated by 25 votes to 6 Other legislation passed by the Council was mostly non-contentious and com paratively unimportant.

Mr. F. R. Wood, manager of the Union Steam Ship Co.’s Islands Services De partment at Auckland, returned to N.Z. in May, after a visit to the Cook Islands.