TAX-EXEMPT VEHICLES

Press, Volume XCIX, Issue 29239, 24 June 1960, Page 7

TAX-EXEMPT VEHICLES

No Change Likely

In System

“The Prw Special Service WELLINGTON, June 23. No change in the incidence of exemptions from motor taxation is envisaged by . the National Roads Board. At its meeting today it was asked whether any review of exemptions was desirable.

The Transport Department, in a review of the position, showed a total of £867,090 potential income to the board, based on last year’s figures, if all exemptions for “E” plate vehicles were removed. Petrol and mileage ta* accounted for £262,102, heavy traffic fees £354.482 and licence fees £251,325 of the totals. The Commissioner of Transport (Mr H. B. Smith) told the board the exemptions were in line with those allowed in other countries. The classes of vehicles exempted were: “Those that were more “machine” than vehicle, spending most of the time off the roads; those making very limited use of roads, such as farm tractors that were permitted a maximum round trip of 13 miles on roads, and those engaged purely on road works. Taxing the latter class amounted to taking money out of one pocket to put it in another, said Mr Smith.

Both the Municipal Association and the Counties Association had acknowledged that their taxexempt vehicles should not compete in trading with privatelyowned ones.

Mr J. B. Cullen (heavy-vehicle operators) said if counties were competing, they should pay tax; but, generally, they would hardly supply a load of shingle to a farmer in competition with private operators. Major N. A. Rattray (Counties Association) said the association had done its best to discourage trading when using tax-exempt vehicles. Mr Cullen said farm tractors had been known to travel more than 13 miles, hauling six or seven tons by trailer into a town.

The board had no recommendation to make on the question.