PETROL TAX ATTACKED

Press, Volume XCVIII, Issue 29021, 9 October 1959, Page 10

PETROL TAX ATTACKED

“Grossly Unfair”

(From Our Own Reporter) TIMARU, October 8.

The road transport of goods was being seriously strained by “grossly unfair discriminatory” taxation, said the president of the New Zealand Road Transport Alliance (Mr D. D. Merritt) in his presidential address to the alliance’s annual conference at Timaru.

He said that the country, would have been served much better if the road transport industry had been helped rather than hindered The alliance would not relax until the special petrol tax and sales tax imposed last year were removed.

“Road transport operators concerned with the efficient movement of people rightly are not agked to pay revenue taxation as part of their operating costs, but those concerned with the efficient movement of the necessities of life are singled out for special taxation.” Mr Merritt said. Effect on Capital

"Another serious aspect of taxation is its effect on our capita] and replacement position. Not only have we had to absorb part of the petrol taxation and other costs thus reducing profits, but income tax then takes far too large a share of the profits that are left.

“Our industry is one which has to put a larger proportion of profits than most into replace-

ment of new vehicles and into expansion. Under today’s taxation we are suffering more than most and in many cases I venture to say to the detriment of the industry,” he said. “Heavy commercial vehicles represent the capital equipment of road transport and as such should not bear taxation at all. Nowhere can be found a capital tax as high as in New Zealand,’* Mr Merritt added.