N. Guinea

Taxation Of Papua-

Is The New Inquiry ‘Loaded’?

THE decision of Australian Terri tories Minister Hasluck to in struct an expert committee to report on the future Customs policy of Papua-New Guinea is probably “loaded.”

The Minister said that many diffi culties were created by Australia and Territories having separate Customs tariffs and. as “Customs policy was vitally linked with future social and economic development of the Territory and the shaping of future economic relations” the Com mittee would inspect extensively, and report. It will take evidence in Sydney in April, and in the Territories in May.

The members of the committee are: Professor S. J. Butlin. Professor of Economics at Sydney University (chairman); Mr. H. J. Goodes, As sistant Secretary of the Common wealth Treasury: and Mr. V. A.

Clark, Assistant Comptroller-Gen eral, Department of Trade and Customs.

Generally, the P-NG Customs tariff is planned to take care of the fact that P-NG residents pay no income tax. Through Customs, an indirect tax is placed on all Ter ritories people, according to their consumption of goods; and thus they pay for the services of govern ment.

Certain people are manifestly uu happy over the fact that, while a P-NG residents, including native; are indirectly taxed, some sec tions are making very large income which escape taxation. There ha\ been repeated official hints that, i Canberra’s belief, incomes shoul be taxed.

It is not as simple as it may aj pear, however. The Trusteeshi introduces complications.

The new Committee obviously expected to provide a modi operand! for a far-reaching chang What follows is on the knees of tl high official gods.