“A CLASS TAX”

Dominion, Volume 23, Issue 257, 26 July 1930, Page 4

“A CLASS TAX”

Higher Petrol Duty TARANAKI OPPOSITION Dominion Special Service. New Plymouth, July 24. “If one could be sure the Highways Board would use the extra 3d. to improve backblock roads, such as those in the Ohura district, and open up the country, then it would be a cheap tax in the finish,” said Mr. J. McLeod, president of the Taranaki Chamber of Commerce, at a special meeting held to discuss the new proposals, and particularly the petrol tax. “If it is utilised to open up the country it will be a blessing in disguise, but we cannot be sure where the money is going. It is a class tax. As it is not going into the general fund, the problem is, will it go to the Highways Board? They are a law unto themsolves. Mr. A. F. Sandford: “Just now it is a disastrous thing, as it is a direct tax on every commercial house.” They had a hurdle to face in the new Customs duties. It seemed to him doubtful whether the Main Highways Board would spend the petrol tax correctly. A member: The payers from whom it is taken would use it better. Mr. S. E. Shaw: They are putting an extra £BOO,OOO on us—a class taxjust at a time when they are also putting on a revenue tax. It seems to be the last straw that broke the camel’s back. It makes one wonder whether they want to choke the motor traffic to boost the railways. The petrol . tax will affect 75 per cent, of the population directly, and the whole population indirectly. Mr. McLeod: They should boost the railways by a rearrangement of the railway tariff rather than by a tax. I think they have fallen to the cry of the farmer—derating. . The present tax of 4d. a gallon raised approximately £1,200,000, and another 3d. would net £BOO,OOO, which allowed the Highways Board about £2,000,000. It means that the Highways Board is to receive another £BOO,OOO a year from the public.

A member: They are now spending it extravagantly. Mr. Sandford: We are not getting value for our money.

Mr. Shaw: The more the board gets the more lavishly it spends it. Mr. McLeod: In the motor business the man hardest: hit will be the one handling foreign goods. When we get hold of the Budget, if all one hears is true, we might have cause to squeal regarding tariff proposals. After a lengthy discussion it was decided to take no further action at present beyond passing the following resolution: —“That while recognising that the Government is forced by the present state of the country’s finances to obtain additional revenue through Customs duty, the Taranaki Chamber of Commerce hopes that the imposition of a surcharge is entirely a temporary measure, and will be removed at the earliest opportunity.”