MOTORS & MOTORING

Dominion, Volume 13, Issue 226, 18 June 1920, Page 2

MOTORS & MOTORING

(By "Clutch,")

Taxation Proposals.. Tlio question of the pro liable proposals of tho Government regarding motor taxation was discussed between "Clutch" and n well-known local motoring i nthusiast tb.is week. It will bo recalled thct at recent interview, between the Minister of.,lnternal Affaire and the New Zealand Automobile Union the Minister informed the union officials that legislation affecting motors and motor taxation would be .introduced to the House during the coming session. Tho Minister did rot, however,, indicate the nature of that legislation, nor the 'basis ;ipon which' the tax. was to be imposed.. In tie opinio of the motorist with whom "Clutch" was conversing, the time was mw ripe to reconsider, the basis snggesteil by the union, which ho understood to be that of an ad valorem duty «) impo'ijxl tyres. He seemed \o think that this method, was not altogether a ; aound one, for several reasons, amongst them being the fact that as .it van not a direct duty on motor-ears, the claim that luxuries were bring admitted -duty fn» while necessities were subject to duty appeared to have some foundation in fact. Furthermore, tho car-owner? 'should remember that any duty imposed upon either the car or any of ils acces' sories would have to bo paid in * he' Ti piaoe by the wholesale importer, wluj would, "of course, add it to 'ho gross funded cost of tho article; and upon that ccst would also place his M-ofit. Thitf, process would be repealed by tho ref .tailer, hence the user would be [.ayina two profits in addition to the luty, ana 'neither of those profits would Le available for road development, for which the duty was intended. While, a Customs duty was ?asy of cc2i lection, ease of distribution >y«is not bo. readily apparent. Upon what .basis was tho Customs duty to be distributed ' among the several', ports of New Zealand ? Was it to be distributed in the district 'of the port of entry? If so, then Wellington and Auckland would be the greatest gainers thereby, and how would it be possible for a Bonds Board, which it was understood would be set up to receive and deal with the products of the tax, to ascertain to what districts the tyres went upon which, duty had been paid The next objection was to the effect that a Customs was reviewable annually at the will <-f the Ministry, and-might, of course, bo subject to any class-of variation, vlicreas a direct tax upon a vehicle itself, imposed by statute, could not be varied except ,'by an amending Act in Parliament. "'Clutch" pointed cut that the Now Zealand Automobile Uniou had always laid it down as a guiding principle that any revenue derived from the' use of any class of motor must bear site direct relation to the extent to which' that vehicle uspd the roads, and that was the reason for the union deciding in favour of a tyre tax. itow. then, would ■ this difficulty ]» overcome if a tax were placed upon the' vehicle, that was, upon ownership, rather than uf-on use? The reply to this question was tliat, general.y speaking, taxes were levied either for purposes of revenue upon artioles regarded as luxuries, or. for the purpose of protecting lccal industries, and if a person cou:!d afford to own n. car and .use it very little indeed,' his ear could- rightly bo classed as a luxury,; .and he should not complain cf its being: taxed as, such, or: to paying the same: duty for the possession of his vehicle as a.struggling trader who used his vehicle daiiy, oecauso it had to be remembered that even a luxury owner could, if he so desired, U6e. his vehicle as frequently as a trader. The difficulty might, how- . ever, bo got over by imposing. a secondary duty upon vehicles used for commerce. It was well known Uiat heavy wagons, traction engines, and . lorries already paid, a special county rate for tho privilege, of running on the reads, • and. a very slight extension of. that principle' Would cover the objection to tho private motorist paying as :;iiich as the heavy user of the roads. Any such additional' taxation must, however,- be ■ paid- over to the National Hoads Hoard I for proportionate distribution as might be determined. .. 1 Another question .was:. Tf we decide to tax a vehicic,' upon what • system shall .it be done? In England, there was an iniquitous proposal to tax at the rate of 4 per horsepower on'the Tf.A.C; rating. That would work out very inequitnbf.y, as'it was well known that the B.A.C. rating did not give j.ust results. Whatever formula vas decided upon .Should, include.a. calculation upon-;tlie stroke-'"as well as upon tho b'ore oi" tho cylinder. The Government of Western Australia had recently adopted what was known as the Dendy-Marshail formula, by which the: horse-pow.er was defined as the square of the bare multiplied by the number, of cylinders, multiplied by tho stroke (bore .and stroke being_ in, inches), and -the product of r .his divided by 12. This-produced the horse-iower of tho engine. To this was aided the. weight of tho car in. liuiul And ♦he stlm total wa6 called the • powerweight. The rate was so much for so . many car weights. . This was an excellent formula, for while neither horse-power ( nor weight by themselves were cf rntch value, the combination of. the two. was a very reliable factor upon _ which to assess taxation, as it. was moving weight ' which did damage to the roads. "Clutch's" informant had another suggestion to make regarding thoWlection of tho tax, ajid it was to have the tax collected by the registering- authority, so that on the purchase:of a. oar.the purchaser would attend at tlte legistering office to register the vehicle, and at the samo.time would pay tho U>x upon it. This' would be of considerable help to any road board administering funds as being a very valuable indication of tho locality in which tho vehicle would be principally used, nnd Would, of course, aiFoct the distribution of th» funds for road maintenance. "It is very clear to me," remarked tha motorist, "that a great deal :>.ore con-, eideratioa will have to be given to this ' subject: than has prevailed in tho past, ■ and it will be as weSl. if all motorists consider these matters fully and enne to some understanding to which they-wut nil loyally abide, as without unity tlieir representations wiK have little effect. Visit to Associations. Inquiring this week as to the progress of tho New Zealand Automobile Union a proposals for the insurance of .members, 'Clutch" wa9 informed by Mr: W; -fleau-ehamp-Platts, secretary -of tho i nion, that lie had visited several of the cssociations already and would, before tha end of the -month, visit the remainder. The object of his i isit .was primarily to discuss the business relations of tho . associations with the union, and to attempt to produce uniformity of opinion regarding legislation, taxation, etc. Incidentally, tho secretary explained, that proposals had been made by c.ii j.nsurnhoe company to tako over the insurances of members on specially fr.vouraU.e terms. These tonus were exciimiu'd in I detail by tho associations visited, ;>ml m • every, case', the proposals were endorsed and the union authorised -te-comple.e tho agreement on their belia.f with tha company. At that stage the secretary, preferred not to detail the proposals,, at tho matter was still incomplete. : Lightiiig-up fime.-To-day, 4.23 p.m. Next - Priday, 4.29' p.m.