TAX ON PETROL.

Press, Volume LXIX, Issue 20776, 9 February 1933, Page 10

TAX ON PETROL.

MOTORISTS' VIEWS. SUGGESTION OF CLASS " TAXATION. Two City men who were asked last., evening for their opinions on the; petrol tax both suggested that tho additional tax which was proposed might prove to be nothing but an unfair piece of class taxation, which would find no favour with the motoring public. "Time will show the influence of this new piece of taxation on the private j motor-car owner," said Mr Hawkes, "and it seems that when registration time corner along in Juno there will be a lot more cars laid up. As motorists we cannot object to tho tax if the money it raises is to be spent on the roads, but if it is to do nothing more than put money into the Consolidated Fund, then it is a class taxation on motorists, and unfair." Successive Taxes. Successive taxes of 2d, 3d, and 2d had already been imposed on petrol since the introduction of the Motor Vehicles Bill, said Mr Hawkes when giving a brief outline of motor taxation in New Zealand. The original idea was to fix a tax of £5 on the basis of ownership of a motor-car. This was strongly objected to in both Islands, and in the terms of the Bill a compromise was reached, the tax taking the form of a license to use, amounting to £2. .Motorists were still paying that tax. Then followed tho tyre tax, but when the Highways Board was established it was found that this had nof provided sufficient funds, and the first' petrol tax of 3d a gallon was imposed :in 1927. Another tax of the same amount, and later, one of 2d, brought-the tax, with primage duty, to 8.4 d up to the present. The additional 3d would increase this to 11.4 d, which amount the motorist would pay- in taxation for every gallon of petrol he purchased. Importers' Views. The representative of one _ big petrol importing firm stated that in estimating the new tax to produce £500,000, a possible drop in petrol consumption had to be taken into account. For 1931, the importation of motor-spirit was between 50,000,000 and 60,000,000 gallons. On tho first figure 'the tax would produce welt over £600,000. For first grade the present wholesale net cost of petrol was Is lOd, less a penny for cash discount, and for second grade Is 9d, less the penny. He was not in a position to say whether the whole of the new cost would bo passed on to the consumers, he said, but it seemed highly probable that it would be. The 1 prices for all the importers in New Zealand were controlled from overseas, and it seemed certain that if the taxation proposals were carried immediately the motorist would be paying the new' price very shortly. ' . "In any case, I think that it is bound to restrict motoring considerably," he said.: "There is a very heavy taxation on petrol already, and this new tax will make petrol probably the highest taxed line imported into New Zealand. I think that this extra 3d will not be looked upon favourably by the motorists at all, and that throughout New Zealand they will look on it as a piece of class 'taxation. The increase will hit tradespeople and_ business firms who have to use their vehicles sQjnueh, Even thc-.farmcrs, with their tractors," arc'''flare" t'o "notice the extra running costs."