§ Lord APSLEYasked the Secretary of State for the Colonies whether his attention has been called to the fact that, following the publication of the Kenya Income Tax Bill, a number of schemes involving the investment of over £100,000 in Kenyan enterprises have been suspended; and whether, before approving this legislation, he will satisfy himself that the imposition of Income Tax will provide an equitable form of taxation in 1914W Kenya, and will not result in any hindrance to the development of that Colony?
§ Sir P. CUNLIFFE-LISTERI have seen no evidence in support of the allegation to which my Noble Friend refers. It is universally agreed that every effort must be made by the Kenya Government to ensure a balanced Budget: and it is clear that this can be achieved only by a combination of drastic economy coupled with an additional measure of direct taxation. Moreover no greater obstacle to development could exist than a recurrent series of unbalanced Budgets which would undermine the confidence of intending investors. On these facts there is an overwhelming weight of authoritative opinion that the most equitable form of increased taxation is an Income Tax. In this connection my Noble Friend is no doubt familiar with the report of Lord Moyne, and he will recall the wide measure of approval which that report received in this House during the Debate on the Colonial Office Vote on 1st July, 1932.