Report to the ... Zionist Congress and to the Council of the Jewish Agency in ... · 1935-08-01 · 8.1935 · p. Seite 474

the Political Department in the capitals of the neighbouring countries. Members of the staff of the Department paid numerous visits to various parts of Palestine and to neighbouring countries, with a view to studying conditions at first hand and fostering relations. XL-MISCELLANEOUS. (a) .—Industrial Matters. The Political Department maintained contact with the Government on a number of matters concerning the position of Jewish industry, particularly in connection with the trade agreements negotiated or concluded with the neighbouring countries. It advised and assisted the Manufacturers' Association in their representations to the Government. The Department supported the proposal of the Association for the establishment by Government of a special Department for Trade and Industry separate from the Customs Administration. It urged the adoption of special measures to combat the practice of dumping by foreign countries. In conjunction with the Trade and Industry Department of the Jewish Agency, material was prepared for further representations in regard to the revision of Government's tariff policy. (b) .—Income Tax. The discussions on the subject of the introduction of Income Tax in Palestine, which engaged a great deal of public attention in 1932 and 1933, were re-opened in February 1934. An official committee was then appointed to study the question with the assistance of an Expert Adviser on Income Tax who had been invited to Palestine from the Inland Revenue Department. The Executive of the Jewish Agency decided to adhere to the attitude adopted by their predecessors, in accordance with the conclusions reached by a special Committee on Income Tax which was set up by the Executive in 1933. Those conclusions were : (a) No justification is found at present for the introduction of Income Tax in Palestine; (b) In view of the favourable financial position of the Palestine Government the Jewish authorities do not regard themselves as called upon to make proposals to the Government with regard to the discovery of additional sources of revenue; (c) Should Government take in hand a comprehensive investigation of the present fiscal system with a view to affecting improvements in it, the Jewish authorities would be ready to co-operate in such an investigation. In the preliminary discussions which members of the Executive had with the Treasurer and the Expert Adviser, prior to the establishment of the Government Committee, they were given to understand that the question of Income Tax had by no means been decided in principle and that Government kept an open mind about it. At the same time they were informed that in any case it was not intended to increase either the burden of taxation at present imposed on the population of Palestine or the relative share of that burden borne by the Jewish population. It 474