HC Deb 29 September 1942 vol 383 cc688-9W
Mr. Spens

asked the Chancellor of the Exchequer whether he is prepared to extend the provisions of Section 31 of the Finance Act, 1941, relating to the production of metals that are of exceptional importance for the prosecution of the war so as to give relief from Excess Profits Tax to those metal mining concerns which, in order to accelerate output, have departed from normal mining practice by concentrating on the production of high-grade ores and, therefore, will incur increased costs in the post-war period?

Sir K. Wood

This matter has been under the consideration of my advisers for some time past and I have come to the conclusion that a case has been established for extending Section 31 to give relief in the circumstances mentioned by my hon. Friend where departure from normal mining practice is of such a character as to reduce current costs and increase postwar costs. The relief contemplated will ordinarily proceed in principle on the basis of allowing the higher costs that would have been incurred if the increase in output had been obtained by normal mining methods. It will ordinarily be measured by reference to the increase in the metal yield of the ore produced, the expenses allowable being increased in that proportion. I propose to include a provision in next year's Finance Bill giving this relief for all accounting periods subject to the 100 per cent. Excess Profits Tax.