'File 19/176 II (C 40) Bahrain Finances' [‎43r] (98/528)

2.
estimate of its yield. I believe that ; small though the
addition is,it would prove a very heavy "burden,particularly
to nakhudas who have to provision large numbers^ of boats.
Most of these men are having the greatest difficulty in fitting
out boats this yBar,and this additional impost might well
prove the last straw for many. The great majority of the
inhabitants of Bahrain are desperately poor,and any increase
in the price of necessities of life would bring them still near
er the starvation line. The customs dues last year brought
in R s .5,09,000 7 so an all round eiihancement from 5 to 7i^ would,
in theory ; bring in another 2% lakhs One lakh is equal to one hundred thousand rupees . I feel certain,however,
that the increase would lead to diminished consumption,and also
probably to diving boats obtaining their supplies at a cheaper
port,and the actual increased yield might be as low^r as a lakh One lakh is equal to one hundred thousand rupees
of rupees Indian silver coin also widely used in the Persian Gulf. .
4. I notice that I was asked not to broach the matter with
the State authotities^ut Mr.Belgrave mentioned,among other
matters,that the Hon T ble the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. had discussed
the question with him,so there seemed no harm in ascertaining
his views. He agrees with me that any increase of the general
rate would cause great hardship and that it should be left at
its present figure of 5/L Luxuries he thinks should be taxed
at lOfoand apparently His Excellency Shaikh Hamad would like
to have the duty on tobacco raised to 15$. These additions
will,he considers,bring in some Hs.50,000/- principally from
tobacco,since there is little trade in luxury articles. I
concur with these suggestions and request that the Government
of India may be asked to agree to thou. It has been found that
an increase on luxury articles iiy of only would give a very
disappointing return,and so to be scarcely worth institutingpu^
tobacco can easily pay the increase now suggested.
5. I suggest therefore that the general rate remains 5$ as at
present,that luxuries should pay 10$ and tobacco 15$. I
should mention that the Adviser is anxious to place a customs
duty of 15$ on liquor imported under licence for the European
community. His Excellency Shaikh Hamad agrees generally with