MOTOR TAXES.

Press, Volume LXIII, Issue 19155, 11 November 1927, Page 8

MOTOR TAXES.

HEAVY CUSTOMS DUTIES. TRADERS APPROACH MR COATES [THE PRESS Special Swrice.) WELLINGTON, November 10. The present situation demands something like emergency measures, and if the position with regard to the roads is not faced, the Government will be charged with neglect of duty, said the Prime Minister (Mr Coates) to-day, when replying to a deputation from the New Zealand Motor Trade, which waited on him to give their views concerning the tariff and the petrol tax. Mr J. F. Cousins said that the traders had no objection to the petrol tax, which they looked upon as the most fair form of motor taxation, but what they were concerned about was the effect of the tariff on top of the tax. There was much ignorance as to the true position, no two sets of figures being alike. The motor transport problem demanded tine fullest investigation, and the time was ripe for the setting up of a Commission. Customs taxation had gone up by leaps and bounds during recent years. During 1926 duties on motor imports totalled £1,276,383, ttte Consolidated Fund getting £1,126,618 of this amount, and the highways fund £149,765. If all the duties in excesß of 10 per cent. British and 20 per cent, general, including the duty on tyres, had been treated as special motor taxation, as advocated by the deputation, the division would have been £835,880 to the Consolidated Fund, and £440,503 to the highways. The special taxation paid by motor owners would amount to £1,540,619 if the new petrol tax was included. The averagetax per car was £lO or £l2, and £3O for a commercial vehicle. In England the average car tax was £l2 (based on horse power), and in the United States it was £7 16s. Private carriers in the United States were taxed to the extent of £35, and common carriers £7B. In England commercial vehicles paid £4B annually, whereas in New Zealand the petrol tax would bring the total paid yearly by commercial vehicles to just oyer £IOO. "We claim that the imposition of the petrol tax weighs more heavily on commercial vehicles than upon private cars," continued Mr Cousins. "The former already have to pay heavy traffic fees, and although they may cause trouble, they have a very definite place in the development of the country." Motorists, he continued, were not a separate class to be singled out for taxation, as they contributed to all forms of taxation. The petrol tax, however, was a fair measure, and they would like to see it the chief tax. All the others could not be wiped out, the registration tax being essential. The principle of a local tax like the Hutt road tax was wrong. What they advocated was a Dominion tax. The Act would operate better withont any exemptions. "That I can quite believe," said the Prime Minister, who also gave an assurance that the State would pay the petrol tax like all other consumers. Mr Coates said that his figures did not altogether tally with those just given to him, but that did not matter much. The economic use and upkeep of roads was. in the consumers' interest, and the petrol tax seemed to be a fair way of dealing with the problem. Ho had set up a small committee, which had already tabulated much valuable information, and he would be glad to receive any assistance the deputation could give. In other words, the idea of a transport ministry was being followed up. The Prime Minister added that he found it difficult to convince some people of the value of number jffctes. The money spent on them was well worth the result. He also said that those who suggested that, the imposition of the petrol tax was designed to put pressure upon competitors did not know what they were talking about.

PETROL DUTY.

REDUCTION TO TWOPENCE?

[THE PEEBS Special Service.] WELLINGTON, November 10. A reduction in the petrol tax to twopence a gallon was urged on the Minister for Public Works (Mr Williams) by a deputation from the North and South Island Motor Unions. It was contended by members of the deputation that the Main Highways Board had approximately £550.000 to the credit of revenue account, which was equal to Id pej gallon on last year's imports. Spread over a period of three years this would provide the estimated annual shortage on the revenue fund to provide for the Highway Board's expenditure' for three) yeajs. Therefore it was contended that until the end of three years thdre was no need for the extra penny to provide for the needs of the present main highways. It was considered that the mileage, of secondary, roads could be reduced, and that the amount proposed to be spent per year on their account Bhould be reduced. While admitting that it might be necessary to make an increase later on, the deputation .urged that in the meantime the amount should be limited to 2d per gallon, which was a fair contribution by the motorists to meet the existing conditions.

The Minister stated that he would give full consideration to the points raised by the deputation^