162. It will be seen that, as regards individuals, the rate payment is 6 per cent. on incomes between the exemption limit and $6,000 per annum. Income tax at the rate of 12 per cent., and also a graduated supertax, is payable on the excess of income over that figure. These rates are generally moderate compared with those in force in the United Kingdom but we think that they are as high as can reasonably be levied in the conditions prevailing in Newfoundland.

  163. Reference was made by more than one witness who came before us to the practice under which Banks and Trust Companies are required to pay a tax of 5/6 of 1 per cent. on the average amount of money on deposit and on current loans. On the whole, we do not consider that this rate is excessive.

  164. In the seven years up to 1924, Prohibition was in force in the Dominion. It was found for many reasons that this system worked unsatisfactorily, and it was consequently abolished in 1924. Under the present arrangement the Liquor Control Board is authorized to open three stores in the City of St. John's; and if it is demanded by popular vote, at any other centre in the Island. In no case, however, has any store outside St. John's been opened. Under the system in force a person is allowed to purchase three bottles of spirits a week, but no limit is placed on the purchase of wines and beer.

  165. The following table shows, for the last eight years, (a) the sales of liquor, (b) the duties on liquor importations paid to the Customs Department, and (c) the net profit on the Board's operations, which has been transferred to the Exchequer. It should be noted that the revenue in column (4) is additional to that in column (3).

  The decline in sales since the onset of the depression is very noticeable.

  166. We have given careful consideration to the question whether there are any further sources of revenue which could be exploited, but we regret that, apart from a suggestion, which is made later in this Report,* for the imposition of a tax on unoccupied or undeveloped lands, we can see no means by which further revenue could be secured at the present time. An improvement in revenue receipts must depend, first, on improved conditions in world markets and, secondly, on the adoption and execution of a long-range policy of reconstruction for which, in existing circumstances, funds are not available. It may be hoped too that an increased revenue may be obtained from Labrador in years to come.

Saglek Bay and Fjord, Labrador, n.d. Photographer unknown. From the album of photographs furnished to the Newfoundland Royal Commission, August 1933. Courtesy of the Centre for Newfoundland Studies Archives (Coll-207), Memorial University of Newfoundland Library, St. John's, Newfoundland. (45 kb)

  167. The following tables show the expenditure of the Island since the War and the details of expenditure during the last three years.

  * Chapter VII, paragraphs 425-427.

Image description updated May, 2004.