Taxation

Threat Of Income

In Papua-N. Guinea

A SHUDDER went through tt Australian Pacific Territorn when Treasurer Fadden, om lining his budget in early Octobc said his Committee on Taxatii; considered that incomes earned New Guinea, Papua and Norfo; Island should not continue to enji exemption from income tax.

The Treasurer said that the Goo ernment, forced to reduce its pm posed grants to Papua-New Guiner must seriously consider whettol Papua-New Guinea interests shou not contribute more in the way direct taxation.

Since then, there have been enn less uneasy discussions concernfi the Government’s intentions, to! not one further official word on til subject.

Non - economic consideratioo come into the matter. Papua an Norfolk Island could be directr taxed; but New Guinea and Nauu (both of which really have sonrr thing to tax) are Trust Territorial and Canberra may have m imposing income taxation theis Furthermore, there will be bittf opposition by all the Territories income taxation, if they are not have representation in the Com monwealth Parliament.

Already, indirect taxation up«q the Territories is so heavy thri much of the profit that was fouu m copra and gold a few years a;s has disappeared.

Mr. Fadden’s expert Commits said that “income tax is not tit proper field for assisting particulli industries.” But if income tax : added to their other burdens, , good many sound industries in tit Territories—which Australia pledged to encourage—will simnj fold up.