(9) That local taxation as a whole, though susceptible of some redistribution, is neither immoderate nor burdensome.
(10) That over-assessment is not, as alleged, a general or widespread source of poverty and indebtedness in India, and that it cannot fairly be regarded as a contributory cause of famine.
The Government of India have further laid down liberal principles for future guidance and will be prepared, where the necessity is established, to make further advance in respect of:—
(11) The progressive and graduated imposition of large enhancements.
(12) Greater elasticity in the revenue collection, facilitating its adjustment to the variations of the seasons, and the circumstances of the people.
(13) A more general resort to reduction of assessments in cases of local deterioration, where such reduction cannot be claimed under the terms of settlement.”
In 1900-1901 the total land revenue realized from territory under British administration in India amounted to £17,325,000, the rate per cultivated acre varying from 3s. 1d. in Madras to 10d. in the Central Provinces. The general conclusion of the Famine Commission of 1901 was that “except in Bombay, where it is full, the incidence of land revenue is low to moderate in ordinary years, and it should in no way per se be the cause of indebtedness.”
Prior to the successive reductions of the salt duty in 1903, 1905 and 1907, next to land, salt contributed the largest share to the Indian revenue; and, where salt is locally manufactured, its supervision becomes an important part of Salt Administration. administrative duty. Up to within quite recent times the tax levied upon salt varied extremely in different parts of the country, and a strong preventive staff was required to be stationed along a continuous barrier hedge, which almost cut the peninsula into two fiscal sections. The reform of Sir J. Strachey in 1878, by which the higher rates were reduced and the lower rates raised, with a view to their ultimate equalization over the whole country, effectually abolished this old engine of oppression. Communication is now free; and it has been found that prices are absolutely lowered by thus bringing the consumer nearer to his market, even though the rate of taxation be increased. Broadly speaking the salt consumed in India is derived from four sources: (1) importation by sea, chiefly from England and the Red Sea and Aden; (2) solar evaporation in shallow tanks along the seaboard; (3) the salt lakes in Rajputana; (4) quarrying in the salt hills of the northern Punjab. The salt lakes in Rajputana have been leased by the government of India from the rulers of the native states in which they lie, and the huge salt deposits of the Salt Range mines are worked under government control, as also are the brine works on the Runn of Cutch. At the Kohat mines, and in the salt evaporation works on the sea-coast, with the exception of a few of the Madras factories, the government does not come between the manufacturer and the merchant, except in so far as is necessary in order to levy the duty from the salt as it issues from the factory. The salt administration is in the hands of (1) the Northern India Salt Department, which is directly under the government of India, and controls the salt resources of Rajputana and the Punjab, and (2) the salt revenue authorities of Madras and Bombay.
The consumption of salt per head in India varies from 7 ℔ in Rajputana to 16.02 ℔ in Madras. The salt duty, which stood in 1888 at Rs.2½ per maund, was reduced in 1903 to Rs.2, in 1905 to Rs.1½ and in 1907 to R. 1 per maund, the rate being uniform all over India. In 1907-1908 the gross yield of the salt duty was £3,339,000, of which more than one-fourth was derived from imported salt.
The heading Opium in the finance accounts represents the duty on the export of the drug. The duty on local consumption, which is included under excise, yielded £981,000 in 1907-1908. The opium revenue proper is derived Opium. from two sources: (1) a monopoly of production in the valley of the Ganges, and (2) a transit duty levied on opium grown in the native states of western India, known as Malwa opium. Throughout British territory the growth of the poppy is almost universally prohibited, except in a certain tract of Bengal and the United Provinces, where it is grown with the help of advances from government and under strict supervision. The opium, known as “provision opium,” is manufactured in government factories at Patna and Ghazipur, and sold by auction at Calcutta for export to China. The net opium revenue represents the difference between the sum realized at these sales and the cost of production. Malwa opium is exported from Bombay, the duty having previously been levied on its passage into British territory. In 1907-1908 the net opium revenue from both sources amounted to £3,576,000. The Chinese government having issued an edict that the growth and consumption of opium in China should be entirely suppressed within ten years, the government of India accordingly agreed in 1908 that the export of opium from India should be reduced year by year, so that the opium revenue would henceforth rapidly decline and might be expected to cease altogether. In 1908 an international commission that met at Shanghai passed resolutions inviting all the states there represented to take measures for the gradual suppression of the manufacture, sale and distribution of opium, except for medicinal purposes.