World War I
The majority of war tax stamps were produced during and immediately after World War I, primarily within the British Empire and its dominions. In most cases, they were produced by overprinting regular issues with "WAR TAX" or "WAR STAMP", though the overprint "WAR" was occasionally used (as in the issues of British Honduras). While they were meant to pay for the war tax only, they were often applied toward postage and registration fees. The following British colonies and dominions produced war tax stamps: Antigua, Bahamas, Barbados, Bermuda, British Guiana, British Honduras, Canada, Cayman Islands, Ceylon, Dominica, Falkland Islands, Fiji, Gibraltar, Gilbert and Ellice Islands, Gold Coast, Grenada, Jamaica, Malta, Montserrat, New Zealand, St. Helena, St. Kitts and Nevis, St. Lucia, St. Vincent, Turks and Caicos Islands and Virgin Islands.
Canada was the first country to issue such stamps during this period, following passage of its Special War Revenue Act in February 1915. Its first war tax stamps, produced by modifying the dies of its King George V stamps to read "WAR TAX", were released in March 1915, in denominations of 1 and 2 cents. There are also denominations in 4 and 8 cents. One bank-note from the 1920s is known to have both the 4 and 8 cent, original style, war-tax stamps. The design was modified again in 1916, applying the inscription "1T¢" to 2 cent stamps. This indicated that the stamps carried both their face value and the tax of 1 cent, conceptually similar to a semi-postal stamp, but whose use was required rather than optional. New Zealand followed Canada's example in September 1915, becoming the second country to issue war tax stamps.
Great Britain and Australia imposed war taxes on mail, but did not issue war tax stamps; instead they used regular stamps to pay the fees. In the United States, which also imposed a war tax following its entry into the war in 1917, the rate for a first-class letter was raised from 2 cents to 3 cents; the added cent was used to pay the tax. A special stamp depicting the allegorical figure of Victory and flags of the Allies was issued to pay this rate.
After Portugal entered World War I in March 1916, several of its colonies issued war tax stamps as well. Most of these were produced by overprinting "TAXA DE GUERRA" on existing stamps, though Mozambique issued a set of two which depicted allegorical figures of History and the Republic. The Portuguese colonies of Macao, Mozambique, Portuguese Africa, Portuguese Guinea, Portuguese India and Timor issued war tax stamps.
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