I wish to refer to a subject which is of supreme importance to all Local Authorities-the question of Local Government finance. A- you are aware, I appointed an official committee to report on this subject. Their report was sent to all Local Authorities for their views. These views have been received, and I must thank your Asso­ciation for the careful consideration which they have given to,. this matter and for the useful suggestions they have made.

Among the suggestions that I intend to make for the
consideration of Government are the following:­

(1) a graded property rate on unit basis,
(2) rates to be levied on capital value of undeveloped land in town areas,
(3) incremental value of land in towns (recovery of betterment), and in rural areas the tax on land to be reduced from 5 acres to 1 acre and the maximum rate to be increased to Rs. 2 for an acre.
(4) Regarding movables, a tax on trades and professions and a sales tax ;
(5) Cattle and buffaloes (excluded at present under the Village Committee Ordinance) to be taxed.

With reference to assigned revenues the extension of right to excise fines to all Local Bodies, and not only to Municipal Councils ; in addition fines under the Street Collections Ordinance, Poison, Opium and Dangerous Drugs Ordinance, Pure Food and Drugs Ordinance, Housing and Town Improvement Ordinance, Pawnbrokers' Ordinance, Election or Census under Local Bodies Elections Ordinance. In addition to these _refund to all Local Bodies of stamp duties as recommended by the 1924 Commission, and Arrack rents and tree tax. Regarding block grants an appreciable increase on the present block grants on a population basis. As you are aware, principles have already been laid down governing grants for water and

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