The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 1 October 1957Vol. XXVIII, No. 3

Decapitation Tax

p. 23 · Read in the full issue

THAT is what Territorians are calling the new £2 per head tax on P NG males which will probably go down in history as the silliest tax of the year.

It is said that the Capitation Tax is undiscriminatory. But is it?

Probably there are 10,000 males other than natives who will pay it.

The rest of the £130,000 per annum will be provided by 65,000 natives. If it is desired that natives should con tribute something to consolidated revenue—and why not? —then why hitch into it 10,000 European males who are already burdened by indirect tax?

If on the other hand, it is to be considered just a general tax and not a sectional tax—why leave out those European women who earn good salaries in the Territory and are more capable of paying £2 per head than the natives?

Territorians are asking "why this vicious budget at this time?" They can choose either of two reasons: (a) Sheer vindictiveness based on the view that "they didn't want income tax—so let's get at them some other way". (b) Some extraordinary formula hatched out by the financial experts who guide the Commonwealth Govern ment.

Territorians can only hope that the Australian grant to P-NG does not in crease again next year—as these in creases now apparently mean more taxes so that P-NG can keep up its end of the burden—a snowballing arrangement that can do nobody good.