MOTOR TAXATION.

Evening Post, Volume 50, Issue 50, 27 August 1926, Page 4

MOTOR TAXATION.

COLOSSAL INCREASE SUGGESTED,

Every right-minded citizen is in agreement with the principle of protecting local industry provided the community as a whole is not penalised for the special benefit of one small section. The motor-body building industry in. the Dominion is pressing the Government to impose increased duties on all motorcars imported into New Zealand, with the object of prohibiting the importation of motor bodies from overseas. The duty levied upon, imported ears during the last 44 years includes, in addition to the ad valorem duty, a special body tax, which was imposed with the object of protecting the motor body industry. This special body tax amounted in round figures for last year to nearly £200,000. This huge burden imposed upon tho motorists of the Dominion has failed most signally in its effect, as can be gathered by the fact that only 600 touring car bodies were manufactured in Now Zealand last year. This means that to enable these 600 bodies to be produced in the Dominion, taxation was paid by motorists at the rate of £330 per body. Tho body building industry states that this sum is insufficient, and is endeavouring to move Parliament to considerably increase, the duty. If the request be granted, then motorists of New Zealand will be called upon to pay colossal taxation for the support of a handful of persons ongagod in an industry . which is totally incapable of meeting tho motoTing requirements of the Dominion*

If tlio suggested duties are. imposed, tho motor industry •will be thrown into a chaotic position, possibly creating unemployment in tho motor engineering trade, which to-day employs 2808 hands, whereas^ the body building industry employs only 1316, and these arc almost wholly ongaged in' building commercial bodies (which will always be built in tho Dominion) and general renovation and repairs to existing cars. Hasty legislation is always to be deprecated, and a thorough examination of all evidence should be made before any such drastic alteration is carried into effect. —(Published by arrangement.).