Report to the ... Zionist Congress and to the Council of the Jewish Agency in ... · 1935-08-01 · 8.1935 · p. Seite 457

tioii of shipping', the grant of official assistance in the opening up of new markets, etc. It pressed, particularly, the need of exploring all possible ways for removing the disabilities arising from Palestine's position as a mandated territory which prevent it from concluding advantageous trade agreements with other countries. At the same time the Executive advocated a policy of encouragement of mixed farming so as to mitigate as far as possible the dangers of monoculture. 5. In January 1935 a comprehensive reform of land taxation in Palestine was carried through by the enactment of the Rural Property Tax Ordinance. The new tax supplanted the complex system of the " Osher " (Tithe) and "Werko" (House and Land Tax) which had been in force since Turkish times and which, despite various reforms introduced since the British Occupation, had greatly hampered the progress of colonisation. The " Osher " was based on gross income, which had the effect of penalizing exertion and investment and discouraging the introduction of more intensive methods of cultivation. The "Werko," which was levied both on urban and on rural property, fell with special weight on the new Jewish settlements, as land which had changed hands since the British Occupation was rated at current prices while property acquired before the War continued to be taxed at obsolete pre-War valuations. The Jewish Agency had made repeated representations to the Government of Palestine with a view to bringing about a change of this iniquitous system. The Rural Property Tax now introduced is based on the net annual productivity of the land. All rural lands of Palestine were divided for the purpose of the tax into sixteen groups according to their rates of productivity. The highest rate charged is for citrus plantations—825 mils per dunam; the lowest amounts to not more than 8 mils per dunam and is levied on crops and plantations of very poor yields. The last three groups of soil are altogether exempt from the incidence of the land tax. The exemptions and alleviations hitherto in force were continued, while it was provided that where more intensive forms of cultivation are introduced the land shall not be liable to any increase of taxation during the period of growth. The tax is fixed annually but must not exceed 15 per cent, of the net annual value. The Executive submitted a detailed memorandum on the subject of the draft Ordinance in which, while appreciative of the general improvement effected by its provisions, it pointed to several grave defects of the measure. It drew attention, in particular, to the high rate imposed on citrus and banana plantations and urged that in view of the difficulties with which both industries had to struggle at present, the rate of taxation should be reduced. It further pleaded for a more comprehensive measure of exemption for land under intensive development during the initial period of growth. It laid particular stress on the need to free the Jewish land companies of a public utility character from the burden of the tax 457