TAX ON MOTORS

Dominion, Volume 23, Issue 257, 26 July 1930, Page 10

TAX ON MOTORS

“Inequitable Proposals” STOUT OPPOSITION Mr. A. E. Ansell’s Protest The Government’s decision to impose further taxation upon motorists through the petrol tax, and the “raid upon the Highways Fund,” as revealed in the Budget, were strongly condemned by Mr. A. E. Ansell, the Reform member for Chalmers, and president of the South Island Motor Union, in an interview last evening. He said that the proposals would be met by great opposition from motorists in general and organised bodies. “By the proposals motorists of both town and country are very hard hit,” Mr. Ansell said. “They not only pay more in buying a new car but also substantially more in running expenses. Motorists have good cause to remember the fight against the Highways Fund of last year, but that was a mere nothing in comparison with the tax made upon the motorists in the Government’s latest proposals. Last year motorists paid over £1,000,000 In petrol tax, and with the 75 per cent, proposed increase it will mean that £750,000 will be paid in petrol taxation alone under the extra Impositions.

“The £35,000 grant from the Consolidated Fund and the £200,000 grant from the Public Works Fund are to be discontinued. In the future Interest will have to be paid on the basis of transfers totalling £1,226,000 from the Public Works Fund to the Highways Construction Fund. This is manifestly unjust, and reflects no credit on the authors of this evasion of moral responsibility, as past grants were made by Parliament free of Interest By its action the Government Is throwing the whole cost of over 10,000 miles of roads which carry about 85 per cent, of the total road traffic of the Dominion on to the motorists and local bodies. Roads are public possessions and conveniences, but the Government refuses to contribute anything toward assisting in their maintenance., Roads and Railway s. “The Budget also mentions incidentally that additional roadlng costs which it Is proposed to take out of the petrol tax will assist In the direction of putting the road competition with the railways on a ‘more equitable basis.* This is a most clumsy manner in which to tackle the question of co-ordination between road and rail. What of the districts where railways do not exist? For example, a large portion of my own electorate must be served by motor transport through there being no railway. People residing there are now to be penalised. “A very large percentage of traffic in the cities Is not In competition with the railways. In Auckland alone the bus services operating exclusively on city and suburban runs have a total annual mileage of over 4,000,000. There, as in other places, suburban residents are to be penalised in order to put the railways on a more ‘equitable basis.’ Those who are called upon to pay this additional tax will strongly resent the suggestion that they should ;be sorted out to assist the railways In the manner proposed. “With all this extra taxation the highways programme cannot be expedited. Nor can any substantial assistance be given to counties. It will also emphasise the 7 unequal distribution of the proceeds of motor taxation. Towns and cities, although contributing very heavily to this fund, will receive no benefit. Motoring has been taxed as though It were a luxury. It Is far from being so. It is an Important factor In our commercial and social life. Paying Through Customs. “Moreover, the luxury portion of the taxation is attended to by Customs duties, which last year produced £1,141,000 from motor vehicles and accessories. This year £1,500,000 will be contributed by motorists through this channel to the general revenue.. Now further taxes are being imposed. “The total motor taxation at present Is almost equal to the total yield from income tax There Is a grave danger of a permanent injustice being done to a section of the public in order to counter a temporary difficulty. It Is obvious that these inequitable proposals will meet with the strongest opposition from not only motor associations, but also the farming community of the Dominion. It Is apparent that although the farmers will be paying Increased taxation, the counties, with the exception of their back-block roads, will receive no further consideration.”