PETROL, CAR TAXES

Press, Volume XCIX, Issue 29270, 30 July 1960, Page 12

PETROL, CAR TAXES

S.I.M.U. Not Satisfied

The South Island Motor Union will continue pressing for the removal of the remaining additional taxes on petrol and motor vehicles “I have stated my own views at the time of the Budget —in short we will .continue the fight.” said the president (Mr G. W. Ferens) at a meeting of the executive yesterday. "Budget concessions to motorists can only be regarded as an open invitation to Automobile Associations to intensify their efforts to obtain complete abolition of the two unjust fiscal taxes on petrol and motor vehicles.” said Mr T. E, V. Turpin (Otago). "The retention of ‘penny pinching’ on petrol for fiscal purposes is to be deplored. The minor reduction in the additional sales tax on vehicles—which might well be called a capital levy on new vehicles—gives little effective relief. The reduction in sales tax from 40 per cent to 33 1-3 per cent really means that instead of an extra £lOO being included in a retail price of £BOO the extra tax is £70." The fact that there was about one vehicle for every three persons in this country led to the natural assumption that the car was the transport of the masses, said Mr Turpin. "The present Budget contains an implied moral; ‘Sell your car and buy an aeroplane’.” Mr Turpin said that was not quite so silly as it sounded. Sales tax on motor vehicles was 331-3 per cent., on aeroplanes nil; petrol tax on the motorist was Is 5Jd a gallon, the tax on aviation fuel was only ?d; Government expenditure on roading in 1961 was estimated at £2.000.000; but Government expenditure on civil aviation was estimated at £3.700.000. “You can buy an airworthy Tiger Moth for £400." said Mr Turpin amid laughter. “Seriously." Mr Turpin added, “we would be failing in our duty to 100.000 members if we relax our efforts to obtain total abolition of these unjust taxes.”