THE MOTOR TAX.

Auckland Star, Volume LV, Issue 225, 22 September 1924, Page 8

THE MOTOR TAX.

A COMPLICATED POSITION. MINISTERS AT VARIANCE. (By Telegraph.—Special to "Star.") WELLINGTON, this day. The second reading discussion on the Motor Vehicles Bill in the House of Representatives showed such growing sympathy for a petrol tax in association with a moderate flat tax on motor vehicles that the select committee appointed to consider the measure is likely to bear some highly interesting evidence, and may have some difficulty in coming to its conclusions. There are complications in the situation. It was announced by the Hon. J. G. Coates (who has charge of the national highways scheme) tbat a petrol tax was desirable. This Ministerial indication was allowed to go unchallenged for some weeks, then the Prime Minister, while visiting the South Island, declared definitely to a deputation of farmers who protested against a petrol tax that there would be no such tax. The difficulties of a petrol tax collection are great, because petrol is used not only for stationary farm engines but for farm tractors.

It was anticipated by supporters of a petrol tax that a system could be evolved under which purchasers for uses other than transit could obtain a tax-free petrol on making a legal declaration of a simple character.

Despite the Prime Minister's statement on- the subject the Minister of Public Works has again spoken of the necessity of a more equitable tax than a tyre tax —one which would impose a levy more in accordance with road use. He is supported, it is believed, by a majority of members, and if the select committee on the bill can be convinced .hat there is a reasonably safe system of differentiating between petrol required for motors and that used for farm purposes it may recommend a small tax of this character.

Mr. 0. J. Havvken, memlier for Egmont. has been appointed chairman of the Motor Vehicles Committee, and it will commence to take evidence tomorrow to meet the convenience of a number of country witnesses who are in Wellington on other business. The committee is faced with the task of hearing a large quantity of evidence, and it proposes to notify the various interests of the dates on which they can be heard.