§ MR. BROOKE ROBINSON (Dudley)To ask Mr. Chancellor of the Exchequer whether, in assessing for taxation the mines in the Transvaal, a deduction is to be allowed in respect of the exhaustion of the mine; and, if so, whether in the next Budget he will afford the same privilege to the mines in this country, which are at present assessed on the gross profits without any deduction in respect of exhaustion.
(Answered by Mr. Ritchie.) By the Transvaal law, in estimating the profits of a gold mine for the purpose of the special tax imposed thereon, an allowance is made for the exhaustion of the capital actually expended on the development of the mine, the allowance being the yearly amount which, if accumulated at 3 per cent. compound interest for the estimated life of the mine, would replace the capital at the end of that period. I think this allowance is different in principle from an allowance in respect of the exhaustion of the mine itself, which is what the hon. Member suggests.