Higher Taxes In

Fiji

Companies' Rate Now 5/in the £

A FORECAST of a substantial increase in taxation was given by the Gov ernor of Fiji (Major-General Sir Philip Mitchell) when he opened the session of the Fiji Legislative Council in November. He urged that trading licences and fees be doubled, and that companies’ income taxation be at least 5/- in the ".

Even at the latter figure, he said, com panies would be paying only half of what was being paid in Britain or New Zealand.

“However much we raise by additional taxation we shall not meet the whole of our war expenditure,’’ said the Governor.

“Our Budget to-day provides for only about one-third of what we may reason ably expect to have to spend on war services. The balance can only be met in one of two ways: (a) by borrowing and (b) by becoming a burden upon the taxpayers of the United Kingdom. Mem bers in Finance Committee have already made proposals to cover our expenditure in full up to the end of this year by rais ing a loan. But I must put it to them that, before we have recourse to borrow ing, we must be certain that we have exhausted all reasonable possibilities of current taxation, for we must not be tempted to lay on the shoulders of the taxpayers of the future burdens which we ought to bear to-day ourselves —particularly as this Colony will need much capital for post-war reconstruction . . .

“Taxation in this Colony is light, espe cially for those with incomes exceeding £4OO a year, and the sacrifices which we have been called upon to bear cannot be compared with those imposed upon themselves, not only by the people of Great Britain, but by the people of the two great neighbouring Dominions.’’

His Excellency expressed the opinion that the doubling of trading licences should be proceeded with carefully, so as not to impose too heavy a burden on the poorer sections of the community.

THE Council’s Finance Committee (whereon non-official members are dominant) recommended: (a) that certain licences and fees be increased by 100 per cent., estimated to produce £10,000; (b) that the income tax exemp tion limits on single persons be lowered from £l5O to £100; (c) that the rate of income tax on corporations and joint stock companies be increased from 3to 4 - in the £.

The Governor and his assistants would not agree to the lowering of the taxation limit, however, and they insisted that the company tax rate be raised from 3 to 5/- in the £.

The latter decision was challenged in open Council, when Mr. Alport Barker moved that the new rate be 4 - in the £ He was defeated by 24 votes to 5.

Two former popular residents of Port Moresby, Mr. Eric Ashbrook and Mr.

Ron. Johnson, are among those in khaki who threw aside ledger and pen. The former is in the Air Force (Meteorological Unit) and the latter in the AIF (District Finance Officer). Both are keen soldiers, who should go far in their respective jobs.