The £3 Tax

Balasundaram's case brought me into touch with the indentured Indians. What impelled me, however, to make a deep study of their condition was the campaign for bringing them under special heavy taxation.

In the same year, 1894, the Natal Government sought to impose an annual tax of £25 on the indentured Indians. The proposal astonished me. I put the matter before the Congress for discussion, and it was immediately resolved to organize the necessary opposition.

At the outset I must explain briefly the genesis of the tax.

About the year 1860 the Europeans in Natal, finding that there was considerable scope for sugar-cane cultivation, felt themselves in need of labour. Without outside labour the cultivation of cane and the manufacture of sugar were impossible, as the Natal Zulus were not suited to this form of work. The Natal Government therefore corresponded with the Indian Government, and secured their permission to recruit Indian labour. These recruits were to sign an indenture to work in Natal for five years, and at the end of the term they were to be at liberty to settle there and to have full rights of ownership of land. Those were the inducements held out to them for the whites then had looked forward to improving their agriculture by the industry of the Indian labourers after the term of their indentures had expired.

But the Indians gave more than had been expected of them. They grew large quantities of vegetables. They introduced a number of Indian varieties and made it possible to grow the local varieties cheaper. They also introduced the mango. Nor did their enterprise stop at agriculture. They entered trade. They purchased land for building, and many raised themselves from the status of labourers to that of owners of land and houses. Merchants from India followed them and settled there for trade. The late Sheth Abubakar Amod was first among them. He soon built up an extensive business.

The white traders were alarmed. When they first welcomed the Indian labourers, they had not reckoned with their business skill. They might be tolerated as independent agriculturists, but their competition in trade could not be brooked.

This sowed the seed of the antagonism to Indians. Many other factors contributed to its growth. Our different ways of living, our simplicity, our contentment with small gains, our indifference to the laws of hygiene and sanitation, our slowness in keeping our surroundings clean and tidy, and our stinginess in keeping our houses in good repair - all these combined with the difference in religion, contributed to fan the flame of antagonism. Through legislation this antagonism found its expression in the disfranchising bill and the bill to impose a tax on the indentured Indians. Independent of legislation a number of pinpricks had already been started.

The first suggestion was that the Indian labourers should be forcibly repatriated, so that the term of their indentures might expire in India. The Government of India was not likely to accept the suggestion. Another proposal was therefore made to the effect that:

1. the indentured labourer should return to India on the expiry of his indenture; or that

2. he should sign a fresh indenture every two years, an increment being given at each renewal; and that

3. in the case of his refusal to return to India or renew the indenture he should pay an annual tax of £25.

A deputation composed of Sir Henry Binns and Mr. Mason was sent to India to get the proposal approved by the Government there. The Viceroy at that time was Lord Elgin. He disapproved of the £25 tax, but agreed to a poll tax of £3. I thought then, as I do even now, that this was a serious blunder on the part of the Viceroy. In giving his approval he had in no way thought of the interests of India. It was no part of his duty thus to accommodate the Natal Europeans. In the course of three or four years an indentured labourer with his wife and each male child over 16 and female child over 13 came under the impost. To levy a yearly tax of £12 from a family of four - husband, wife and two children - when the average income of the husband was never more than 14s. a month, was atrocious and unknown anywhere else in the world.

We organized a fierce campaign against this tax. If the Natal Indian Congress had remained silent on the subject, the Viceroy might have approved of even the £25 tax. The reduction from £25 to £3 was probably due solely to the Congress agitation. But I may be mistaken in thinking so. It may be possible that the Indian Government had disapproved of the £25 tax from the beginning and reduced it to £3, irrespective of the opposition from the Congress. In any case it was a breach of trust on the part of the Indian Government. As trustee of the welfare of India, the Viceroy ought never to have approved of this inhuman tax.

The Congress could not regard it as any great achievement to have succeeded in getting the tax reduced from £25 to £3. The regret was still there that it had not completely safeguarded the interests of the indentured Indians. It ever remained its determination to get the tax remitted, but it was twenty years before the determination was realized. And when it was realized, it came as a result of the labours of not only the Natal Indians but of all the Indians in South Africa. The breach of faith with the late Mr. Gokhale became the occasion of the final campaign, in which the indentured Indians took their full share, some of them losing their lives as a result of the firing that was resorted to, and over ten thousand suffering imprisonment.

But truth triumphed in the end. The sufferings of the Indians were the expression of that truth. Yet it would not have triumphed except for unflinching faith, great patience, and incessant effort. Had the community given up the struggle, had the Congress abandoned the campaign and submitted to the tax as inevitable, the hated impost would have continued to be levied from the indentured Indians until this day, to the eternal shame of the Indians in South Africa and of the whole of India.