No arguments on tyre tax

Press, Volume CX, Issue 32493, 31 December 1970, Page 2

No arguments on tyre tax

(N.Z. Press Association) AUCKLAND, Dec. 30. A sales tax of 20 per cent on racing tyres is being imposed on teams arriving here for the Tasman Championship motor racing series. Some drivers will be bringing as many as 200 tyres with them to New Zealand. Tyres not used here are exempt from the tax but even a few miles track testing makes them liable for the tax. Once used, the tyres could not be resold inside New Zealand said a Customs spokesman today. “This sales tax on tyres seems odd to me,” said Mr V. Granatelli, manager of the S.TJ*. team which will run a March 2|-litre for Chris Amon and a LotusFord 70 for David Oxton in the Tasman series.

“After all, every part of a car which runs in this country will suiter some degree of wear,” he said. “We might even blow up a motor, but .we’re not going

to be charged sales tax on those—only on the tyres. Still, there’s one lesson I’ve learnt as a racing team manager, and that is never to argue with Government officials. It usually leads to more delays.” The Customs spokesman said he did not see how racing teams could get around the sales tax. As far as he was aware there was no exemption for racing tyres. If the tyres were bought in New Zealand sales tax would have to be paid. It would be an anomaly for tyres bought overseas to be exempt from the tax.

The tax also applied to tyres previously used overseas. “We regard second-hand goods that have not been used in New Zealand as equivalent to new goods,” he said. If racing teams were allowed to sell tyres they bad used inside New Zealand “grossly inflated prices” might create unfair competition to local tyre makers.