No Abolition Of Extra Taxes On Motorists

Press, Volume CI, Issue 29952, 13 October 1962, Page 13

No Abolition Of Extra Taxes On Motorists

The Government is unable to accede to the request of the joint standing committee of the North and South Island Motor Unions for the abolition of the emergency taxes on petrol and motor-vehicles, but the subject will be reviewed “from time to time,” says a letter from the Minister of Finance (Mr Lake) to the committee. The committee considered motorists taxation at a meeting on July 20, and also a request from the South Island Motor Union that the Minister be asked to consider, after completion of the Public Accounts for the half-year ended September 30 the abolition of the emergency taxes, a statement from the secretary of the committee (Mr M. F. Foate) says. The request was later endorsed by the North Island Motor Union and a letter was sent to the Minister on September 28. The letter said: “The tax concessions contained in the last Budget, while of value to the general taxpayer, did not give any specific relief to the private motorist, and the motoring organisations have already expressed their disappointment that the Government in its second Budget again failed to give any further relief from the balance of the emergency taxation levied on petrol and motor-vehicles under the 1958 Budget.

“Comprehensive submissions in support of the abolition of these taxes were presented to you on June 14 by a deputation representing this committee so that we do not feel it necessary to set these out again in detail. “We again remind you that since the emergency taxation was introduced in 1958 by the previous Government the private motorists of the Dominion have contributed an estimated amount of £33 25m in addition to their already heavy contribution to the National Roads Fund. “The motoring organisations also feel that the concessions contained in the last Budget were made possible by the continuance of the emergency taxation on petrol and vehicles. It could be stated that of the £l4m of tax concessions contained in the Budget, 7s 2d of each £ 1 being rebated by the Budget was contributed by the motorist.

“This committee has been instructed by both the North and South Island Motor Unions to urge you to consider, after the completion of the Public Accounts for the half-year ended September 30, the entire abolition of the emergency taxes on petrol and motor vehicles,”

The matter had again been most carefully considered, said the Minister’s reply, but the Government regretted it could not accede to the representations. Mr Foate said the matter would come before the next meeting of the joint standing committee of the motor unions.