Proposed

Direct Taxation Proposed For W. Samoa

Reorganisation of western Samoa’s revenue - collection machinery is contemplated. Proposals include a modified form of income taxation.

A long report has just been pub lished in Apia setting out recom mended changes. It is based on investigations made by Mr. R. A.

Banks, of the New Zealand Taxa tion, Department, and a Depart mental Committee set up in the Territory.

It contains interesting tables comparing the proposed new system with systems already operative in other countries in a comparable stage of development, like Fiji, Tonga, the Gold Coast, and New Guinea.

But although great changes are proposed only very small additional revenue would be realised—and it is acknowledged that considerable additional revenue will be called for to carry out the Development Plan (see elsewhere) which will also re quire considerable capital expendi ture.

The Report is also remarkable in having completely avoided the issue on reintroduction of a direct tax for the Samoans. Such a tax would yield a substantial amount and this would be used entirely for the benefit of the Samoans them selves.

The Committee makes the follow ing recommendations: The following existing taxes to be abolished en tirely: Building Tax, Amusement Tax, Store Tax, Copra House Tax, Immigration and Emigration charges.

The present Business License fees to be abolished and a flat rate of £2 per annum be levied.

The present Salary Tax to be abandoned and replaced by a general income tax with some modifications.

Motor vehicle licenses to be con tinued.

Water rates to be levied on fixed rates depending on whether resi dential, general business, or special business purposes, until such time as water meters can be installed.

Export Duty, which has been second only to Import Duty as a revenue source, to be retained on a sliding scale for cocoa and copra Cocoa export duty would be at 10 Per cent, on a basic valuation of £2OO per ton, f.0.b., increasing by 0.1 per cent, per £1 increase in price (12 per cent, on £4OO, 121 per cent, on £450, etc.).

Copra taxed on the same scale, with a basic price of £5O per ton, f.o.b. (At £7O, duty would be 12 per cent). Export duty on other pro duce to remain as at present.

New Zealand Reparation Estates (Government concern) to pay these export taxes, but to pay income tax only on trading profits earned from sources not subject to export tax.

The proposed Income Tax would commence at 6d in the £1 rising to 7/6d in the £1 on taxable income of £8,400.

In comparison with the present Salary tax, there would be increased deductions for wife and children.