THE PETROL TAX

Evening Post, Volume CVIII, Issue 119, 15 November 1929, Page 12

THE PETROL TAX

DISTRIBUTION METHOD

HIGHWAYS BOARD'S VIEW

• No statutory provision exists requiring an apportionment of the proceeds from the petrol tax between the two islands, but the Main Highways Board expresses the opinion in its annual report that the most equitable method of distribution of the tax is according to the actual consumption of motor spirit in each island.

As a guide, to the basis on which tho distribution should be made, the board recently obtained from all oil companies figures showing the distribution of the petrol as between the two islands. The information obtained showed that during the calendar year 1928 approximately 72 per cent, of the motor spirit imported was consumed in the North Island and approximately 28 per cent, in the South Island. No adjustment has been made on these percentages to take account of rebates because the definite information is not available, and the board states that, in any case, it appears probable that the rebates in each island will bear a similar proportion to one another as the amounts <5f petrol used. Moreover, the proportion of rebates is so small that a very considerable error in their proportions would not materially affect the proportion of the totals.

In making the apportionment the interest on moneys borrowed for construction work in each island .; has been charged against the revenue allocation to each island, and other adjustments in connection with interest on accumulated balances have been made.

On the assumption given above, the balances to the credit of the North Island and South Island respectively on 31st March, 1929, were £209,261 and & 408,8G9.