FRESH TAXATION.

Ashburton Guardian, Volume 51, Issue 135, 20 March 1931, Page 5

FRESH TAXATION.

MOTORISTS PERTURBED. (Special to “The Guardian.”) WELLINGTON, March 19. Genuine alarm has been expressed by motoring interests throughout Now Zealand at a persistent suggestion that the Government contemplates imposing further taxation on the motoring public, particularly in the direction of- a liorse-power tax similar to that which has been operating more or less unsuccessfully in England for many years. So far the possibility of higher motor taxation lias not been considered ir concrete form by the Government. While admitting that before this, session ends he must find avenues through which to draw £850,000 extra in direct and indirect taxation, Mr Forbes stated to-day that the sources of this additional revenue would be . deter-, mined largely by the reception accorded the economy proposals in the House. “I have to get £850,000 from taxation,” Mr Forbes said, “and at the moment I can only, say that this revenue will come from direct and indirect taxation. My taxation plans will he formulated as soon as possible after the disposal of the measures now being considered by Parliament; So far the Government lias not gone into the. question of imposing 'further taxes on the motoring public.’’ Although the possibility of motor taxation is a real one, for no source of revenue is absolutely safe from particular attention at the present time, there are several excellent reasons why the Prime Minister will probably consider it only as a last resort. Nearly 50 per cent, of the motor vehicle owners of the country belong to the farming community and any additional burden upon motor-ears, whether a horse-power tax or an increased jietrol tax, must react heavily upon farmers and nullify, in some degree at least, the efforts (Parliament is now* making to enable tlie primary producer to withstand the hardships of the economic depression. When Mr Forbes was iii London last year he conferred with the members and officials of the a Ministry for Transport and was shown some detrimental effects of the operation of the horse-power 'tax in England, the chief of which was the restriction of enterprise in motor-car construction" by confining engines to low Ivorse-power. and opening the door to . higher powered foreign cars on the overseas market. It is felt in England also that the liorse-power tax, although equitable upon paper, lias, failed to exact revenue according to the use of the roads by the motoring public, and' local bodies are already suffering through last year of the usual contribution of £35,000 from the Consolidated Fund to the Main,Highways Fund, and it is practically certain that this year’s amount will also, lie retained by the Government for ordinary purposes with, a corresponding.rest riot ion on highways construction' throughout the Dominion. "We do not know ourselves,” Mr,, Forbes assured the interviewer, “but as soon as wo ascertain how the’ country receives our other financial economy proposals, t’.ie sources of extra taxation will be determined and Bills immediately brought down for the consideration of the House.”