"الملف 35/87 VI A. 38 الإصلاحات والجمارك والشؤون المالية في مسقط" [و‎‎٥‎٧] (٤٤٠/١٢١)

b I
If it snouid be considered necessary to make any
increase 1" should suggest either an additional l^fc or 2ifo
making 6^ or ad valorem respectively. The former rate
is in practice easier to col ect than, 6$ would be as it
works out at 1 anna in the rupee -
If we take Rs yi lakhs as the average annual revenue from
Customs then an increase,of should yield Rs • 1,87,300
extra a year. This would mean the raising of the local
sale price by *0123 of a rupee per rupee , or 2*4
pies peer rupee, or i'8 be^iaa per rupee 144 bezias = 1 Re.^
or 1 anna for every 3 rupees , and merchants snouid not be
allowed to raise their prices Dy more tnan this amount,
^.h additional duty would of course double the above
figures and yield Rs ^ 3 »73 »GOG extra a year and raise prices
by X anna for every Rs. 2 /8*
although a small increase of duty would not materially
increase smuggling , yet the extra revenue accruing from the
increase would, 1 think, hardly compensate for the political
damage, etc., which would result Irom altering the existing
treaties and agreements and from the all-round increases in
prices , and should im only be adopted as a last resort when
the state of finances necessitates drastic measures»
If necessary tne budget should be balanced Dy curtail
ing expenditure rather than by increasing taxation without
compensatory advantages.
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