WAR TAXATION

New Zealand Herald, Volume LXXVII, Issue 23599, 7 March 1940, Page 5

WAR TAXATION

PROPOSALS IN FIJI OBJECTION TO METHOD REFERENCE TO WHITEHALL [from our own correspondent] SUVA, Feb. 13 Stating that they did not oppose the expenditure of money on defence, but merely the method of raising the money, the unofficial members of the Fiji Council opposed the proposals brought forward hv the Governor to raise approximately £39,000 recurrent expenditure incurred in the defence proposals. The taxation proposed by the Governor was outlined in his address at the opening of the Council on F'riday. When the necessary bills were moved on Monday, the 14 unofficial members, comprising European, Fijian and Indian representatives, voted against them, but they were carried on the votes of the 16 official members. Details of Scheme

It was proposed to raise the money by a 25 per cent increase on residential tax, which formerly was a poll tax of £1 a head between the ages of 21 and 60; by a 25 per cent increase on individual income tax; 50 per cent on company income tax; and an addition of 1 per cent to the Port and Customs service tax on imports. The Governor stated that in addition to the recurrent expenditure, there were heavy capital charges ■which would have to be met, but the whole of the money would perhaps not have to be borne by the Colony, and what was required could probably be drawn from the Colony's reserves. Unofficial members pointed to the fact that the Colony had built up reserve funds totalling over £300,000. They contended that it would be better policy to draw on those funds for defence purposes than to restrict trade by extra taxation, which they submitted was not required. In reply to the Financial Secretary, who said that, as the reserve funds were invested in Britain, it would help Britain at present not to draw upon them, members stated that if it was inconvenient® to draw on the funds now it might be more inconvenient later. Council Adjourned

Following the passage of the bills, representations were made to His Excellency by the unofficial members that the matter should be referred immediately to the Secretary of State for the Colonics. At their request, His Excellency agreed to adjourn the Council until the Secretary of State's reply was received.

Other important measures to come before the Council this session are the Native Land Trust Hill and the Copra Grading Bill. The former is designed to give greater security of tenure to lessees and to secure for the native race adequate areas for their own use, maintenance and support. The second bill, which is opposed by a number of planters, wdhld provide for compulsory grading to improve the standard and reputation of Fiji copra.