They're Building Up For

Tax Battle Started It, But That's Only Half The Story They're Building Up For A Showdown In N. Guinea

As the inevitable moment approaches for the introduction of income tax into Papua-New Guinea, the Territory’s eight year-old Legislative Council is set for the liveliest session in its history in June.

HHE session starts on June 22 so L that the tax ordinance and re lated bills may be steam illered another stage further, the any amendments debated, and e whole thing adjourned until July I —when taxation will finally be troduced. It will be made retro lective from July 1.

Decision to postpone the final issage of the bill until July was minor victory for the opposition rces and about the only sur ise in NG tax-fight developments oce April 20, when the only three ected members of the 29-man ‘gislative Council walked out, and mounced they intended to resign soon as the tax bill becomes law.

The three made it clear that they ?re taking action not as a protest ainst taxation, but as a protest ainst the “undemocratic use of e official majority to pass the v without a prior independent in iry” and “in objection to the lack sufficient representation of the ople of the Territory in their uslature”.

Fhe postponement decision, made ter a deputation from NG saw

Acting Prime Minister McEwen in Canberra in May, is of little real help to the taxpayers. Its stated purpose is to give the Canberra politicians a better chance to “sympathetically consider” all the amendments, but nobody expects the leopard will change his spots during the considering process, although in future, he may think more carefully before springing.

What the postponement might do —and Canberra well knows it —is take a little of the thunder out of the June session. With the tax bill still not finalised at that session, Canberra is hoping that the elected members —and some of the nominated members, too—will not cause them embarrassment by re signing, as they threaten.

But there will be more ways than one of causing embarrassment at that session if need be, as Canberra might soon find. And whether a boycott of the P-NG Legislative Council begins in June, July or the month afterwards is not of great consequence.

The fact remains that Canberra’s handling of this tax matter has precipitated a public revolt against the machinery that controls the big territory, and a showdown is on the way. That revolt will be working it self out even though Territorians may have settled down to paying their money to the Tax Collector.

Meanwhile, In NG it’s a case of while there’s time there’s hope on the tax fight itself, and throughout May taxation was still the biggest single topic throughout the Terri tory. One meeting of the New Guinea Taxpayers’ Association held in Rabaul drew 480 people.

Other developments: • The association is professionally briefing Sydney tax expert J.

Mackellar White to assist it on tax amendment proposals, and he will be in Port Moresby for the June Legco session. • Territorians have been warned they can expect prices for many goods to go up if tax is introduced, and Administration officials have already threatened to police price controls. • Many business people have an nounced their intention of return ing to Australia when tax is in troduced.

Port Moresby people no doubt read many things into this inscription when it suddenly appeared in May outside the Port Moresby post office, where building work is going on. —Papuan Prints.