Road tax proposals

Press, 24 September 1980, Page 4

Road tax proposals

PA Dunedin A system of reading finance as an alternative to the; controversial road-user charges system was proposed at the annual confer, ence of the Road Transport Association in Dunedin yesterday. Road-user charges is the most contentious topic before the four-day conference. The proposal is based on licence fees and fuel taxation. It provides for all vehicles over 3.5 tonnes to be subject to a quarterly licence fee, and fuel tax equivalent to 6c a litre of diesel. The total tax raised would equate the heavy motor vehicles’ share of the National Roads Board funds, as at present calculated. Each vehicle type would pay a licence fee sufficient to return the, appropriate amount for that vehicle type. Two-thirds of the contribution from trailers would be provided from licence fees, and the balance would be recouped from the extra fuel used by the prime mover.

Fuels would be taxed at source by the wholesaler. Non road-users might be approved to receive bulk deliveries of untaxed fuel. A rebate system would be included to allow claims for off-road use. A lower, licence fee option would be provided for two-axle vehicles of less than eight tonnes.

All vehicles would be identified and licensed by type, as at present. There would be no . nomination of vehicle weights, the max-

; imum axle weights would i apply. I Explaining the new pro-] posal, Mr G. J. Payne, ofl Papakura, chairman of the association’s- ■ trading; and technical committee, said it was only >. a < matter for discussion. at this stage. ■ ' ” “My committee feels a lot more work will have to be done before it can be put to the Government,” Mr Payne said. Advantages of the scheme would include the elimination of the most contentious points of the present scheme. It would also mean the. elimination of the administrative problems faced by transport firms and Government officials. It would be easier for traffic officers to police, dramatically reduce the incidence of tax evasion, and improve the better use of fuel resources, Mr Payne said. i Among the disadvantages! would be the possibility that oil companies, would insist on cash payment for fuel to avoid having tp administer the tax return.- It would also mean the loss of optional selection of different axle weights for a rig. There would be disadvantages in using time licences to make the most efficient use of equipment. Mr Payne said the proposal could mean also the loss of the present ability to increase charges up to the maximum 20 per cent in any one • year, and some firms would pay, more than under the present system.