§ Mr. Bensonasked the Secretary of State for the Colonies whether any agreement or compromise has been arrived at with the representatives of the European community in Kenya as to the taxation to be borne by them and by the native community generally?
§ Mr. Ormsby-GoreNo, Sir. In connection with the Budget proposals for the year 1937 the European elected members of the Legislative Council of Kenya asked for an assurance that the direct taxation of Europeans would not be increased for the purpose of expanding the native services, while at the same time reducing the direct taxation of natives. I have asked the officer administering the Government to inform them that their point of view will be borne in mind as questions arise regarding the provision for such services. But direct taxation is not the only source of revenue and with increasing prosperity the native community as others will pay more in indirect taxes; and I have made it clear that there cannot be a hard and fast relation between the expenditure on native or non-native services and the amount of revenue derived from the direct taxation either of Europeans, Asiatics or natives.
§ Mr. Bensonasked the Secretary of State for the Colonies whether, in view of the recent reports by commissions or commissioners in Kenya, Uganda, and Nyasaland on the disadvantages of the ungraded hut and poll tax as the instrument of native taxation, he will consider setting up a commission to investigate the whole question of native taxation in African territories?
§ Mr. Ormsby-GoreAs a result of the reports of the various commissions, referred to by the hon. Member, the various systems of native taxation at present in1296W operation in East Africa are under consideration by the Governments concerned, and I have urged them to pay particular attention to this matter. Such investigations will naturally take a considerable time, and moreover the hon. Member will appreciate that the circumstances in the various Dependencies differ widely. I do not consider that the appointment of yet another commission as suggested by the hon. Member would be helpful.