100 The following table, giving the index number of prices of certain articles at Khartoum for November 1919 as compared with the pre-war standard of prices, ma}*- be of interest in tlris connection:— ClassiCcatiou.

Dura Butter (Samn) Mutton .. Beef Coffee (Abyssinian) nice "Wheat fiour Tea Sugar (quality “ Ras ’’) Cotton fabrics Petroleum Pre-war Standard.

Average Price in November PJU'.

100 100 100 100 100 100 100 100 100 100 100 281 234 171 167 204 300 373 22.5 344 368 3t>l In order to meet the heavy increase in expenditure referred to above, additional revenue has had to be raised. The measures adopted in 1916 became totally inadequate, and fresh sources have had to be tapped.

The animal tax, which had been raised in 1916, was again increased in 1919, as was also the traders tax. The expansion of trade, the high prices obtained for camels, cattle and sheep and the large jirofits made by the trading community, fully justified the increased rates decided upon.

The traders tax was introduced in 1913, and until 1919 the rates had undergone no change in spite of the fact that they were admittedly low. Even now as amended they are still very moderate, being 4 per cent, on profits below £E. 100 per annum, 5 per cent, on profits exceeding £E. 100 but below £E. 500, and 6 per cent, on profits above £E. 500.

Nothing further could be done in the domain, of direct taxation. Besides the animal tax and the traders tax, the Ushur (tithe) and land tax are the most important items of direct taxes. The yield from land tax is comparatively small, and where the tax is levied it is recognised to be sufficiently high. As to XJshur, the percentage of 10 per cent, is a recognised one, established by usage and tradition. For political as well as financial reasons, therefore, it is not considered advisable to introduce any change in these taxes.

In the domain of indirect taxation the field was wider. The excise duty on sugar introduced by Egypt in 1917 was levied on sugar exported to the Soudan, and the Soudan Government was credited with the duty on all such sugar. The amount derived from this duty amounted to about £E. 180,000, and was a great relief to the Soudan Treasury. In addition to this, and as the need for further funds was pressing, the Soudan Government constituted itself in 1919 the sole importer of sugar, leaving the distribution throughout the country in the hands of middlemen and retailers. This measure has enabled the Government, by a system of licences, to control the price of this commodity and effectually to prevent profiteering on the part of traders.

This arrangement on the whole w'orked satisfactorily, and in addition to the excise duty referred to above, it enabled the Government to make a further profit of about £E. 70,000 in 1919.

The permanent increase of 20 per cent, on salaries, however, and the raising of the war gratuity from 30 to 40 per cent., which involved an additional expenditure of about £E. 500,000 per annum, created a very difficult situation, and threatened to result in grave embarrassment to the Treasury. These measures had to be introduced with effect from 1st October last consequent upon similar action taken by Egypt. The difficulties of the situation were further increased by the abolition of the excise duty on sugar by Egypt, which involved a loss of £E. 180,000 to the Soudan Government. In these circumstances the fact that the Government was the sole importer of sugar proved of incalculable value. By adding to the sale price of sugar P.T. per kilog. the Treasury was able to recoup its loss over the excise duty and realise some £E. 157,500 in addition.

The second important measure adopted in the way of indirect taxation was the further increase in the railways and steamers rates. A surtax of ten per cent, on goods and animals had been introduced, as already stated, in 1916. This surtax was gradually raised with the rise of the cost of all materials, and especially of House of Commons Parliamentary Papers Online. Copyright (c) 2006 ProQuest Information and Learning Company. All rights reserved.