§ 35. Mr. Skinnardasked the Secretary of State for the Colonies for what reasons native tax has been increased in Nyasaland; whether he is satisfied that the incidence of taxation is fair as between Africans and Europeans; what is the lowest level of income at which Europeans pay Income Tax; and whether he will consider the exemption from direct taxation of all Africans with incomes below a specific figure.
§ Mr. MayhewAs the answer is necessarily long and detailed, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.
§ following is the answer:
§ In accordance with a suggestion made by the African Protectorate Council, and with the concurrence of all native authorities, native tax was increased, as from 1st January, 1948, in order to raise additional revenue required for development purposes, including the improvement of agricultural, educational, medical and other facilities for the African population. The tax now payable by each adult male is 10s. (an increase of 1s. per annum) in all areas except Likoma and Chisamula Islands, where the rates have been increased from 7s. to 8s. The reimbursement to native authorities has been increased from 1s. to 2s. in respect of each tax collected, to enable those authorities to raise the emoluments of their staffs and to provide funds for local development purposes.
§ Immediately before the introduction of these increases it was calculated that whereas the African was paying on an average about four per cent. of his total income in taxation, of which about 2½ per cent. was in respect of direct taxation, the average European was paying about 19¼ per cent. in total taxation and 9¾ per cent. in direct taxation.
§ All Europeans pay a poll-tax of £4 per annum. In addition, a single person pays 388 Income Tax on an income exceeding £250 per annum, and a married person on an income exceeding £450 per annum.
§ It is not considered practicable nor desirable to exempt from native tax Africans with incomes below a specific figure, as it is impossible to determine the individual incomes of the majority of Africans, especially those engaged in agriculture. The Government, however, has the power to exempt any person from the payment of the whole or any part of the tax. The number of exemptions at the end of 1946 was 76,000. My right hon. Friend is satisfied that there is no unfairness in the incidence of taxation as between Africans and Europeans.