i8 THE RUBBER INDUSTRY 



millions in China and other densely-populated countries 

 in Asia and elsewhere. 



On land sales a tax of 6 per cent, is levied, but other 

 direct contributions are not onerous, the principal 

 impost being a small charge in proportion to the 

 number of rubber -trees tapped by the collectors 

 employed on each of the various properties. Indirect 

 taxation, on the other hand, is exceptionally heavy, and 

 takes the form of duties on all rubber exported and on 

 merchandise brought into the country. This export 

 duty up to the end of 1913 was at the rate of 20 per 

 cent, of the value on rubber produced in the States of 

 Pard and in the national territories, and 18 per cent, 

 for that from Amazonas ; but in January, 1914, the duty 

 was reduced to 18 per cent, in the case of Para and the 

 national territory, and a further diminution is promised.* 

 A duty of 8 per cent, is levied by Bolivia at present, 

 but a reduction in the immediate future is proposed. 



The whole question of taxation is on a most unsatis- 

 factory basis as regards both the State and Federal 

 Governments. In the case of the former, the export 

 duties on rubber have yielded a large revenue of recent 

 years, and a costly and cumbrous administration has been 

 created as a result of the period of high prices from 1909 

 to 1912. Heavy public indebtedness has been contracted 

 without any compensating benefit to the State, and the 

 rubber industry is now called upon to bear the burden 

 of the extravagant expenditure incurred during the 

 last few years of unusual prosperity. In the present 

 situation of the rubber market, it is inevitable that the 

 State revenues must show a most serious falling off in 



* Although the State of Para formally agreed to this reduction, 

 the lower rate had not come into force in April, 1914. 



