THE GOLD DUTY

Evening Post, Issue 86, 11 April 1936, Page 16

THE GOLD DUTY

EFFORTS FOR REMOVAL

The New Zealand Gold Producers' Association has compiled and published in pamphlet form: its case ■ for the abolition of,;the gold export duty. It is shown that Australia encourages the gold-winning industry in every possible way, but "the levying of the gold export duty shows New Zealand in a bad light." A strong protest is made against this "inequitable and wholly unjustifiable export duty," to which has to be added income tax paid by mining companies, vihile shareholders are assessed for income tax on' the higher scale because their dividends from mining companies,are taken into account in arriving at the rate in the £ on which their income tax is calculated, and their "dividends are again assessed'for unemployment relief tax, and, finally, profits on sales transfers and other business 'are .taxable. "Surely the time has'arrived," states the pamphlet, "when there should be a radical alteration in the policy of the Government in regard to the goldmining industry." .-, .. -■■•■■-.<■ A table in the ■ form of a questionnaire shows the disparity between Australian and New Zealand taxation of gold mining, to the disadvantage of the industry in New Zealand. Instances are given showing New Zealand companies that, but for the tax, could have paid dividends. Referring to assistance given by the State to the gold-mining industry it is shown that revenue from gold, duty for 1935 was £102,617—which was only part of the revenue derived from the industry—and the assistance granted by the Mines Department was £3786. Expenditure by the Unemployment Board on mining, it is submitted, was of little value. The board had expended £187,689 in unemployment relief in connection with the gold industry, but in some cases men were "subsidised J;o work ground absolutely too poor to enable Ghmese to make a.living," and the overall cost of the 83700z of gold won in twelve months worked out at £22 per oz.