[?]Eek Ordered

G's New Copra Tax

St What The

f the Papua-New Guinea Ad

listration thought they were

iding something to Territory

titers on a platter with their

j basis of assessing copra

ort tax, they were soon dis

jioned.

R. T. Grahamslaw Had

scarcely finished his last word in introducing the bill he March meeting of Legislative ncil when Mr. B. Fairfax-Ross, •dian of planters’ interests, was his feet declaiming, with the t of battle in his eye: “When Greeks bring gifts—beware”! ie Greek in this case—meaning usurer Reeve —was away on e but the gift he was offering not what it seemed to be and, rding to Mr. F.-R., would not the Treasury anything, le new ordinance was believed ssary because copra marketing entered a new era since the of the MOF contract in 1957. 1 now, the tax has been levied a declared, “in store” price— ;h was, of course, based on the I MOF price. The tax and stab tion contribution are now to be dated on a true f.o.b. value, i the surface, the new scale is to be much in favour of the ; ucer—tax under the old scale , n when copra was valued at ; per ton, and Stabilisation Fund i ributions began when it bed £27 per ton. Under the new ;, tax does not begin until the value of copra is £49 per ton, Stabilisation Fund contribu only when it reaches £53 fob. looked good; but Mr. Fairfax quickly showed that the key he mystery was in the letters ; explained it this way; Under present system of paying tax' stabilisation contribution on declared value for FMS at. £A46, NG planters pay £3/5/- for tax £2 into the Stabilisation Fund, len basing his calculations on equivalent c.i.f. value of £Stg.6s, Fairfax-Ross worked back to 7 that the final f.o.b. price on :h the planter would have to duty was EAS6/14/8 (the c.i.f. i less freight, insurance agency ges, commission, shrinkage; the premium for good grading, 25 per cent. Australian ex ige). It was on this amount the final payment of tax id be paid —and this amount iding the cost of running the Gr Copra Marketing Board. r. Fairfax-Ross described this

as one of the cherished dreams of the Greek come true.

The Tax deductions from this £ASB, according to the new scale, would be £3 export tax and 10/fcr stabilisation. This meant that the planter is getting only 5/- re lief in respect of copra export tax but £l/10 - in respect of Stabilisa tion Fund relief. At the same time, the Treasury was losing only 5/-

per ton —contributions to the Sta bilisation Fund having been out side Treasury control.

The new ordinance provides for the exporter to pay tax etc. on the declared value, at time of export and then within 60 days produce evidence of the final f.o.b. value— and have the final amount of tax adjusted.

The Copra Tax Deductions com pared:

Old Duty

New

Duty

Value Export Stabilisation Export Stabilisation Per Ton Tax Contribution Total Tax Contribution Total £A £ s d £ s d £ s d £ s d £ s d £ s d 46 . . 3 5 0 2 0 0 5 5 0 nil nil nil 49 3 12 6 2 0 0 5 12 6 13 4 — 13 4 55 . . 4 7 6 2 0 0 6 7 6 2 13 4 7 6 3 0 10 60 5 0 0 2 0 0 7 0 0 3 16 0 1 0 0 4 16 0 65 . 5 12 6 2 0 0 7 12 6 4 10 0 1 0 0 5 16 0