Fiji is Looking for More

Export Tax is on Again:—

Fiji is Looking for More Revenue

Although in the past, taxes on Fiji exports have been vigor ously fought—and beaten—by unofficial members of the Legislative Council, it is obvious that official members have not entirely dismissed this method of raising revenue from their plans.

IN his review of Fiji’s finances at the recent session of the Legislative Council in Suva, the Financial Secretary indicated that he was in favour of the in troduction of export taxes to bridge the gap of probably £200,000 be tween revenue and 1955 expenditure.

Mr. Davidson considered that any increase in direct taxation would be out of the question at present. He favoured the introduction of land tax on a graduated scale, as a long term measure for the Colony, but said it was doubtful whether that could be introduced within the present decade due to the necessary time it would take to value ail lands.

Mr. Davidson noted that from £BO,OOO to £lOO,OOO could be raised annually by adopting the recent Fiscal Review Committee recom mendation to introduce taxation of dividends in the hands of share holders. There were certain com plications, however, which would have to be considered.

At present, said Mr. Davidson, the Colony has a dangerously high pro portion of revenues coming from what are called elastic sources of revenue—personal income tax, ad valorem taxes on luxury items, and so forth, which are sensitive to

sudden changes in economic cir cumstances. (The fact that they pay no ex port tax on copra, gives Fiji planters a higher price than planters in other British territories covered by the MOF Agreement. They receive about £4 per ton more than planters in P-NG. The latter, of course, pay no income taxation, although the higher cost of living in the Terri tory offsets that advantage to a great extent. Planters in BSIP are worse off than those in Fiji or P-NG as they pay export tax, like New Guinea, and income tax—as in Fiji).