INDIA'S FISCAL POLICY.

Hawke's Bay Tribune, Volume XII, Issue 241, 25 September 1922, Page 5

INDIA'S FISCAL POLICY.

QUESTION OF IMPERIAL PREFERENCE. INQUIRY COMMISSION’S REPORT. (Received 25, 9.2 U a.m.) Delhi, Sept. 23. The report of the Indian Fiscal Commission to inquire into the tariff policy of the Government of India, including the question of the desirability of adopting the principle of Imperial preference ,has been issued. It recommends the adoption of the policy, to be applied with discrimination, and proposes the constitution of a tariff Board to investigate the claims of particular industries to protection. In regard to Imperial preference, the commission holds that any general system of preference to British products will involve a serious burden, which it is unreasonable that India should shoulder, and recommends that the Tariff Board examine the question of particular commodities with a view to seeing whether preference on them should be granted, the final decision to rest with the Legislature. An Indian cotton excise duty is oandemned, and a recommendation is made with a view to enabling India to tackle the problem afresh with a clean slate. The principles of export duties were examined, and the conclusion drawn is that they should only be imposed for revenue purposes. The commission, however, considers, under certain exceptional circumstances, that it may be necessary to impose a temporary export duty on food and grains with a view to restricting export. Thee report is unanimous, subject to the minutes being signed by the minority., who recommend an unualified pronouncement in favour of protection, subject only to such discrimination as the Government and Legislature may desire to exercise. They unreservedly condemn cotton ies and cannot agree to preference in favour of the United Kingdom until complete fiscal control is vested in non-official members of the Legislature, nor in favour of the Dominions even on the basis of reciprocity, until Indian people are admitted to the Dominions on a status of complete equality. —(A. and N.Z.)