BUDGET BOMB.

Auckland Star, Volume LIX, Issue 95, 23 April 1928, Page 7

BUDGET BOMB.

MOTORISTS IN ARMS.

Ready For War Against

Elusive ChurchilL

EP. AND PETROL TAXES.

(Australian and X.Z. Press Association.)*

LONDON, April 22.

The Cabinet has finally approved of the Budget. A principal feature is a reform in the system of rating.

This is aimed at assisting agriculture and industry, the former by freeing agricultural land from rates, and tha latter by the allocation of large sum* to relieve the "black spots" of industries from rating liabilities. It will be a highly controversial scheme, as it rearranges the functions of local government.

The "Daily Express" says a bombshell is the decision to tax petrol, in addition to the present high horse power motor It is understood that Cabinet succeeded in checking the project only aa regards the amount of the tax. Tlw secret as to its exact figure has been well kept. Well-informed circles believe a compromise was reached at 2d • gallon.

Over 1,000,000 motorists are preparing to declare war on the Chancellor of the Exchequer, M r. Winston Churchill, in the event of the fulfilment of what is described as his amazing decision to add a petrol tax to the present tax of £1 per horse power. For the past five years motorists' organisations have been agitating for the removal of the horse power tax, and the substitution of a tax on petroL The culminating point came wfefc at petition with over 1,000,000 «git—l in favour of this step was presented the Chancellor. The elusive iff Churchill gave no hope that the lilaa would be granted. Now, on the the Budget, says the "Express," « learned that the Chancellor proposes to add a tax of anything up to 4d a gallon on petrol without removing the horse power tax. Motorists are astonished, and even in face of a definite announcement say it is too ridiculous to be believed.

The evening papers yesterday made a feature of the proposal, which is regarded as a bombshell. In the past three years all the Budgets have contained a series of new taxes. The raids on the motorists' road fond have rua into many millions of pounds.