TAX ON GOLD

Evening Post, Volume CXVII, Issue 23, 27 January 1934, Page 10

TAX ON GOLD

NO REDUCTION YET

(By Telejfraph.—Press Association.)', DUNEDIN, January 26.

DUNJSDIN, January 20., , The Prime Minister (the/lit. Hon. G. W. Forbes) told a deputation from the Otago Chamber of Mines today that he could not hold out any immediate hope of the tax of 12s 6d an ounce on gold being reduced. The deputation was headed by Mr. W. A. Mitsbn, who said that the tax imposed a Hardship on the goldmining industry, particularly where individual miners were .struggling to make headway. He suggested that the removal of the tax would encourage the development of areas where returns were sufficient to make mining, pay if the tax were removed, though ■ they would not be sufficiently large to bear the burden of the tax. If this could be clone1 it would be of benefit to the industry, even if a tax had to be substituted which would operate on companies working at a profit. The speaker claimed that the income of from £100,000 to £120,000 which the country obtained, as a result of the tax did,not compensate for the loss which was- suffered through the fact that overseas.capital, which was available for mining investment in New Zealand, was driven' away. Mr. J. Neil said he thought the charge of 5 per cent., which was made for survey plans, coming on top of the tax ofi 12s 6d on' gold, and making a total charge of 15 per cent., was too much for any industry to carry. STIMULUS OF HIGH EXCHANGE. ■ The Prime Minister explained it ivas necessary for the Government to obtain revenue, and the increase which had brought the exchange rate up 25 per cent., had givon the mining industry a great lift. If that was not sufficient to stimulato mining nothing would do it. He could not hold out any hopes of a reduction being made which would affect the revenue of the country, as the national ineomo was hot in a position to stand it. . Next year when the country was feeling the benefit of the high prices for wool the Government might be able to effect some reductions, and the question of a tax on gold would take its place along with the rest. -

The Prime Minister gave an assurance that if r-'the rate of exchange should be altered the matter would then be reviewed, "'but he said that ■ the Government was not contemplating making any reduction in the rate. He promised to discuss with the Minister of Mines the possibility, of making the tax, changeable on a basis*of fine gold instead'of, as at .present, on the weight of the gold after it had been melted.