MOTOR TAXATION. PETROL DUTY REJECTED.

Press, Volume LX, Issue 18185, 23 September 1924, Page 10

MOTOR TAXATION.

PETROL DUTY REJECTED.

A further report on the taxation and regulation of" road, .vehicles has been published by ;tho departmental committee of the .British Ministry of Transport. It deals with taxation, the terms of reference having been as follows:—"To take into consideration the objections to the present system of taxation of mechanically propelled road vehldes in the light of experience gained, and' to- report whether any more satisfactory alternative method of taxation can be devised, or the present system be modified..or..revised to meet such objections'-so as. for the purposes of this enquiry., in.either.case to produce a revenue equivalent to that produced in the financial y«ar 1921-1922. ' The main report is signed by five of the ten members of the committee and contains the following general conclu-sion:--''lt is in . these circumstances that we have again reluctantly come to the conclusion that no method of administering a motor spirit duty can be contrived which would not inflict grave inconvenience and additional expense upon considerable numbers of consumers of motor-spirit (and of some kerosenes)' Used for purposes other than the propulsion of road, vehicles, or which could be relied upon to yield a certain revenue at a reasonable cost." Two other members of thecommitte?, while unable.to agree with the conclusions and recommendations of the main report so far as they relate to the incidence of taxation, have expressed the following opinion:—"ln so far as the main report deals with the question of a motor spirit duty, we are in entire agreement with it. "We think that a sufficient case has been stated in the report to show that a motor spirit duty is impracticable 'and unsatisfactory, although an even stronger case against a motor spirit duty would appeal- to be .established in our proceedings." Of the remaining three members, two reported in favour of a motor spirit tax and one presented a separate memorandum.

The report concludes with a summary of recommendations and suggested modifications relating to tho existing system. These include suggestions for a rearrangement of tho rates of duty within the commerciail goods and hackney vehicle classes; for rebates in respect of licenses surrendered before their date of expiry (which will enable a hcense to be taken out for any particular month of the year); for' the issue, in certain circumstances, of special daily permits; for the reduction in the surcharge on quarterly and partyear licenses; for the simplification of the registration book and procedure for renewal of licenses; and for «, possible alteration in the formula for calculating horse-power.