A CONTRAST

Evening Post, Volume CVII, Issue 22, 26 January 1929, Page 25

A CONTRAST

TAXATION ON MOTORS

BRITAIN AND AMERICA

The following is an editorial that appeared in a' recent issue of "The J.l&--tor":—

"In America the average taxation per motor vehicle is £2 Us per annum. In England the average taxation per motor vehicle is approximately £17 14s per annum. A difference) of £15 per vehicle per annum. "It baa been left for a vico-president of one of the largest industrial corporations of America to put. before the members of the British Empire Chamber of Commerce in New York a few plain facts. Here is one: 'In England you look upon the motor-car as an economic waste instead of an , economic gain. Motor-cars are just as important in saving time and speeding up business as the telephone and the typewriter, and recognition of that fact is one of the reasons why America is so productive and so prosperous.'

"Another statement by tlin same authority is to tho effect that the United State 3is the only country in the world that is motorised, and that condition is attributable to the American view that the motor-car is not a

luxury, but part of the machinery of modern business.

"We have so often emphasised these points ourselves that it becomes almost humiliating to find them urged upon a British ' Empire Chamber of Commerce by an American who, at the same time, told his audience that the British horse-power tax on motor-cars is responsible for Britain's inability to sell motor-cars, abroad as well as for tho absence of a good second-hand market in England. It was added that tho fact that tliu tax remained tho sumo when the car is resold destroys the second-hand market.

"We give the latter sentence emphasis because in a recent interview with a' leading member, of the industry in this country. we received tho amazing information that, in his opinion; to. advocate a reduction in taxation on second-lumtl curs was :i mistake! . The American authority, from wliom we continue to quote, stated to the members of (be British Empire Chamber of Commerce that. 00 'per cent, of the motors used in the United States were second-hand purchaggs, a circumstance

I which was declared to bo the foundation and success of the industry in that country. "If that is the case in America, what might not be the prosperity of the used-car industry in this country where the car of British manufacturo is usually admitted to have a longer life? We are unable to accept the view that was expressed to ua that the unloading of used cars from a glutted market would hamper the sale of new cars. It is much more likely that it would,bring in a new class of motorist, and that with a more ready demand for used cars created by the easing of the tax ou such vehicles thers would be a greater inducement for many who continue to .use old. models to purchase new cars."