PETROL TAX INCREASE

Press, Volume LXXV, Issue 22823, 23 September 1939, Page 3

PETROL TAX INCREASE

PROTEST OF MOTOR UNIONS ‘ ' TO EXCESSIVE TAXATION” Protests against the increased taxation on petrol were made at the annual conference of the South Island Motor Union in Christchurch yesterday. . . . The following resolutions were telegraphed to the Prime Minister (the Rt. Hon. M. J. Savage) “Since the following resolution was passed the Dominion has assumed a state of war, and both motor unions have offered their services and organisation to the Government, but "the Government is earnestly asked so to distribute the burden of war taxation so that no section of the community stovAd Vie. mtaurly discriminated ajfainst. In that connexion in recasting the consideration for financing in an emergency the Government is requested to give effect to the views contained in the resolution draften before the outbreak of war. “That this conference of delegates representing all the automobile associations comprising the North- and South Island motor unions with a membership totalling more than 96,000, places on record its unanimous protest at the action of the Government in adding to an already excessive rate of taxation on petrol, a further impost of fourpence a gallon. Corning as it does after repeated negotiations have been made for relief by remission of that portion of the former tax that was allocated to the Consolidated Fund, the Government’s action indicates a complete disregard of the interests ot petrol users. The Government s suggestion that the additional tax is required for the purpose of defence is, in the opinion of the conference, untenable, for the reason that the tax has-not been ‘earmarked’ for that purpose and, furthermore, should active defence of the Dominion against invasion become necessary, the first step that would undoubtedly be • taken would be to commandeer all .bulk petrol stocks, thereby automatically depriving the Government of the revenue, which it alleges is required for that purpose. The conference regards as distinctly unfair the position into which the Government’s action places petrol users, whereby, in protesting against additional taxation, they might be charged with an unpatriotic unwillingness to make a contribution to the security of the Dominion, when the real position is that petrol users are already taking their full share of this responsibility in common with all other people of the Dominion. The conference will not be deterred u” this factor from pressing, on every possible occasion, in every possible way, for fair not only in regard to this new imposition, but. also for reduction of the unduly high, rate of petrol tax that has obtained in New Zealand for some years.”