TAXATION OF MINING.

New Zealand Herald, Volume LXIX, Issue 21136, 19 March 1932, Page 14

TAXATION OF MINING.

Sir—There has been a good deal of newspaper writing on the subject of prospecting for gold and some parties are said to bo in the field. As a matter of comparison between looking for a second Waihi" in New Zealand or Australia the following figures may be interesting to prospectors. The existing Waihi Company pays in taxation in one form or another £66,000 and if the proposed addition of Is per oz. on gr>ld duty is included it will be just £70,000 per year. This gives some indication of how the mining industry is "fostered" by our Government. In Australia there is no taxation at all on mining operations and into the bargain a bonus of 10s per oz. is paid on all extra gold produced. The Waihi Company produced 63,0000z. of gold last year, so that if prospectors are really in search of "a second Waihi" they had better look for it in Australia, and, if found, be £IOO,OOO per year better off than if the said "second Waihi" should be found in New Zealand. No ordinary mine could long survive the burden of taxation now imposed upon a successful venture in New Zealand. Does our Government imagine that this is the way to encourage the production of gold ? How about the equality of sacrifice? Francis Hull.