IN THE MALAY STATES

Dominion, Volume 11, Issue 122, 9 February 1918, Page 2

IN THE MALAY STATES

CURIOUS WAR TAXATION. . "The- position of tho rubber industry is, on tho whole, satisfactory, but the restrictions on freight are, of course, very serious." This (state* (he "Sydney Monnut' Herald") was the conclusion pronounced by Mr. Jluson, ~f Perak, federated Malay States, who is on a visit to Sydney. Tho restrictions on shipping, ho said, are such that at present considerable quantities of rubber are being held u.p, and a reduction of production has been decided upon. Some of the '.'states havo already decided not to tan their aroas lor 12 or 18 months. The British Government has restricted the-exports on British bottoms- to 2000 tons a month", whereas the output exceeds 12,000 tone, so there is a huge balance to be held over every month, Though overyone is feeling the offects of this restriction, it is particularly affecting the small native growers, who produce a quality inferior to that of tho big estate.? which have every modern equipment. Tbo exports on British ships, moreover, must be of tho best quality; nothing but highgrado product will bo accepted. - The excess profits tax raised in .England is hitting the young producers of rubber hard. The old companies that were paying big dividends before the 'war get off lightly, but young companies that have increased their output 6ineo the war (started are getting the full weight of the tax. Mr, Husan quoted two estates of equal area, viz., 900 acres. One—owned by an old-established company—paid £$ excess profits tax. The other is a young plantation just coming into bearing, and because tho output grew rapidly, as compared with prc-u-fu' yield, the company has had to pay .£15,000 in taxation. The difference is due merely to the accident of age. The tax, however, does not apply to locallyregistered companies, which escape with tho 0 per cent, local income tax, while the excess profits tax impossd a burden of 80 per cent, on profits with excess of 10 per cent, more than was shown in pre-war times. Strong representations novo been made to London on the subject, and the decision of the Government is' now being awaited. "The people," said Mr. Huson, "do not object to paying whatever taxation is necessary to help to win the war, but they want it distributed equitably." In spite of the disabilities mentioned, the people are accepting tho conditions in a loyal spirit, and maintaining the rubber industry ui) to its pre-war standard, excent in the matter of production. In regard to tin production in the Settlements, Mr. Huson" said big developments are in prosrress, especially in regard to dredging. That r.ystein. is coming more and more into "ogue, especially in the operation of areas that cannot, otherwise be worked; Nevertheless, considering the high price of tin, the production is not as large as would reasonably be expected. New fields are being opened, but as a general rule the lode propositions are ne> as payable as the alluvial deposits, which are being worked chiefly with dredges and by hydraulic sluicing.