Criticism of petrol tax

Press, Volume CXV, Issue 33963, 2 October 1975, Page 13

Criticism of petrol tax

(From Our Own Reporter) DUNEDIN. The president of the South Island Local Bodies Association (Mr T. F. Home), told a meeting of the association’s executive in Dunedin that he had not seen any explanation of what the 21 cents in extra petrol tax was being applied to. Mr Horne was commenting on a letter from the Acting Minister of Finance (Mr Douglas), who said local bodies could not be exempted from the petrol taxes which had been increased to relieve balance-of-payments problems. Nothing could be done about increases in the basic price of petroleum, said Mr Horne, but the taxes were the cause of the high price of petrol. Where were the taxes going to? “We could tell the Minister that the tax has nothing to do with the balance of payments,” said Mr B. Ferguson (Nelson). “We won’t get anywhere, but it will do no harm to make the point. Only exports can balance our imports.” Mr Home asked why local bodies should pay the extra tax. Its effect might be intended to reduce petrol use, but local bodies were very conscious of costs.