asked the Under-Secretary of State for the Colonies why a new ordinance has recently imposed an export tax on coffee produced in Uganda which does not apply to coffee produced in the Belgian Congo, Ruanda or Urundi which is exported via Uganda whether or not it be processed in Uganda; and whether, as this discrimination will have an adverse effect upon coffee-growing in Uganda and, as an expert tax is, in principle, open to grave objection, he will consider its abolition?
On the recommendation of the standing committee appointed by the Governor to advise on export taxes, the Governor, with the approval of my Noble Friend, imposed in September last under the provisions of the Uganda War Revenue (Export Tax) Ordinance No. 30 of 1940, an export tax of £2 a ton on Uganda coffee. My Noble Friend does not consider that the taxation will have an adverse effect on the industry.
Is not the imposition of this tax inconsistent with the Government's own policy, when they pressed in the summer of last year for preferential rates on the railway in favour of the export of coffee?
No, Sir. The method of the export tax is used in many colonies for the purpose of raising revenue and it is a part of the policy of the Government to enforce it.