ously below bhe estimate, for it is expected ._■ that the number of returns will be largely } augmented, and thab an examination oi many of the incomes, and the deductions therefrom, will result in a material altera tion in the direction of larger assessment. The estimate of £47,000 for companies will probably be somewhat exceeded, bub the <■■ exact figures are not yet ab my command, though I am able to say that ib is certaic - v that- the esbimabe willbe reached. Tbe .f. graduated land tax will be seb down as f aboub equalling the estimate, and may be taken. as producing £10,000—;. possibly more — roy here again the exact figures a:e nob obtainable,. in consequence of the reductions -f made by the Board ot Review nob having yeb been taken into account. Tbe - ordinary tax on land—that is, on mortgage; f and on land less improvements to bhe value • ' of £3,000 for each owner and certain de-. r ducbions by way of exemption—was the parb of the new scheme of taxation that was most severely attacked by opponent. of the Governmenb. It was alleged over : and over again that calculations must have; been made on a wrong basis. Elaborate; statements were prepared to prove that I; f had been over-sanguine, if not reckless,, and I understand that it has been by many looked on as certain thab 1 should have to j. announce a serious deficit in this sourc-i ;> of revenue. I was aware that the assess ment of improvements would be a difficult process, and thab owners and assessor would frequently differ widely in their calculations of value of improvements the benefit of which waa exhausted. I have pleasure in stating that information has ' been mosb readily accorded by the great majority of owners, and that they have assisted the officers of the departmentin arriving ab bhe values of.land and improve ments thereon. I am able to state with / confidence that the assessment is the best and most sure bhab has been made in the colony, and I am happy bo inform honour* able members thab the result has been so faf satisfactory that there will be a surplus under that head which will secure a small excess on the whole scheme. 