Report to the ... Zionist Congress and to the Council of the Jewish Agency in ... · 1935-08-01 · 8.1935 · p. Seite 475

was understood that, in so far as Government saw the necessity of creating a new source of revenue, it was actuated, firstly, by the fear that its main source of revenue, which was now constituted by the Customs, might dwindle in the future, and secondly, by the desire to redistribute the incidence of taxation between the various sections of the population in a more equitable manner. The representatives of the Jewish Agency expressed their opposition in principle to the question of the Income Tax being treated as an isolated measure and not as a part of the general problem of the fiscal system. With regard to the specific proposal of introducing an Income Tax they expressed their opposition for the following reasons. Firstly, they considered an Income Tax likely to act as a check on the flow of investment capital at a time when Palestine was in a process of rapid development. Secondly, they feared that an Income Tax, by its very nature, and all possible precautions taken by the Government notwithstanding, was bound to weigh more heavily on the Jewish community than on the rest of the population. Thirdly, they doubted whether, given the present level of business standards prevailing in Palestine, the evasions might not reduce the proceeds of the Tax to such a low point as to make its introduction not worth while. The representatives of the Jewish Agency reiterated these arguments when invited to give evidence before the Committee. A consultation of Jewish economic bodies and trade associations was convened by the Executive to afford an internal exchange of views on the question. It was finally understood that as a result of the Committee's findings the proposal regarding the introduction of an Income Tax had for the time being been shelved. (c).—Professional Restrictions. The Executive had occasion, during the period under review, to make repeated representations to Government on the subject of the admission of members of the liberal professions—physicians and advocates—to practise in Palestine. It pleaded against the introduction of restrictions, urging that in a growing country like Palestine it was essential that the immigration of persons of professional qualifications should not be hampered and that anything tending in the direction of the establishment of closed professions should be avoided, as this was bound to reduce standards of efficiency and public utility. Recently the Jewish Agency was informed by Government that in view of the large number of qualified medical practitioners who had taken up residence in Palestine and had been granted licenses to practise, it was proposed to introduce restrictions on the issue of such licenses with a view to preventing overcrowding and professional abuses. It was accordingly proposed to fix a quota, variable annually, for the number of licenses which might be issued to persons who adopted Palestinian citizenship or received permission to settle in the country. 2. The Executive made strong representations against the 475