HEAVIER TAXATION

Evening Post, Volume CXII, Issue 3, 3 July 1926, Page 18

HEAVIER TAXATION

NEW ZEALAND'S LENIENCY.

There are over 138,000 motor-vehicles in New Zealand, returning the comparatively small revenue of about £350,----000 in annual license fees. The Hamilton Borough Council has taken the initiative in a move for increased taxation, on condition that the motorists receive its benefits in the shape of better roads. Last week the Newmarket 'Borough Council approved of increasing the road funds by higher taxation. Provided that the taxes are reasonable no thoughtful motorist should raise objection, says "S'ocus" in the Auckland "Herald."

■ Any effort to tax motors under the unfair horse-power system applied in Great Britain -would be strongly resisted. Many light American cars pay over £20 a year in Britain. Tho New "Zealand motorist pays only &2. If the Government would revise the whole system of taxation and introduce a levy on petrol it would be a very desirable and equitablo measure. Unfortunately the Government is rather proud of the annual licensing system. ' As a matter of fact, it is rather cumbersome. By delegating the licensing Junctions to the post offico the Government mado a mistake. It is a function which should have passed into the hands of the police. ■ -The collection of taxes by annual licensing is inefficient. Tho expenses of administration of petrol taxes in the United States are negligible. Petrol taxes yielded £28,000,000 in America during 1925. They are collected through the petrol distributors who are required Jo furnish monthly returns. Since the world's oil sources are controlled by half a dozen combines, tho system is greatly simplified. The Postal authorities of New Zealand actually charge over £10,000 a year for expenses of mo tor-vehicles li- -" eenaiag. This is obtained by a flat rate ilevy of Is 6d each vehicle. The charge ■ is deducted from the license fees. Per- , haps it coats every penny of the £10,----"000 to effect licensing, but the charge is purely for administrative expenses 'and registration plates are paid for by ;the motorist in addition. "'■ Taxes on motors are lighter in New ■ Zealand than in any other country in 'the world where automobiles are used "to any extent. The average tax in Britain last year was £13 per vehicle Jv. America the average was £5 por Tohicle—a figure which would seem : Tery satisfactory from a road mamten- . ance point of view. Tho minimum tax ■in Australia is £3. The 11 h.p. to 12 hp. type of car pays £3 5s per annum. 'High-powered American cars pay irom £7 to £9. The average tax in Australia was between £4 and £5. In Japan, automobiles are regardred as fair game by the revenue authori•ties. Passenger cars from 5 h.p. to 10 h.p. pay £23-12s 6d. Between 10 h.p. ■ and 15 h.p. the tax is £39 ss, and from .15 h.p. to SO h.p. the figure is £60 ss. 'Over 20 h.p., the levy is not less than ■■£80 18s. Trade vehicles are given : more encouragemont, and taxes are less ■than half of thoso imposed on pleasure ■ cars. Under such absurd regulations lit is no wonder that there are only "10,000 passenger cars and 200 trucks •in Tokio, a city with a population of "over 2,000,000.