§ MR. O'DONNELLasked the Under Secretary of State for India, Whether the Road Cess Tax and the Public Works Tax are not an income tax of six per cent on the entire native proprietary and farmers of Bengal; and, whether he has seen any report of a recent native meeting at Bombay, protesting against the manner in which native incomes are burdened by income taxes more or less disguised, while European salaries and European profits are avowedly or practically exempted?
§ LORD GEORGE HAMILTONThe maximum amount which can be levied under the Road Cess Tax and the Public Works Tax in India is an anna in the rupee upon the annual value of lands in a district, equivalent to 6 per cent. I have seen a telegraphic report of a meeting held at Bombay two days ago; but I have no information on the subject beyond that newspaper telegram.
§ MR. O'DONNELLasked the Under Secretary of State for India, Whether a licence tax has not been introduced in the Bengal Legislative Council by which incomes of five pounds a-year, or less than two shillings per week, such as are earned by the very poorest class of native market dealers, are to be taxed; whether the total amount leviable in any single instance, even in the case of the large incomes of the European trading and mercantile community, is not limited to twenty pounds; and, whether Government proposes to introduce any compensatory measure to prevent the Licence Tax being practically a burden upon native trade alone?
§ LORD GEORGE HAMILTONThe maximum amount leviable under the Licence Tax was 200 rupees, the minimum 1 rupee; by which no one coming under the operation of the Bill could pay more than 2 per cent on his trade income. Since, then, modifications have been made with a view to increasing the maximum amount leviable, and also to exempting the lower incomes; but we have not yet received the Bills in their final shape. At present, we have no intention of putting on any tax additional to those proposed by Sir John Strachey.