BRITISH CARS THE TAX REDUCTION

Evening Post, Volume CXVIII, Issue 36, 11 August 1934, Page 26

BRITISH CARS

THE TAX REDUCTION

MISGIVING IN THE TRADE

The reduction of the horse-power tax in Britain is having a result not anticipated by the trade, a vigorous invasion from America and Canada. The Americans are coming back.

Although the reduction does not take place' Until January 1 the imports of American private cars, taxis, and chassis have already increased, three times over last year's imports at the same period (May) and it is the conviction of some people1 in the trade that the British market has b.ecn reopened to the Americans, who had almost completely disappeared from it. Still more significant is the fact that the market price of second-ha-nd' American cars has risen as much as 50 per Cent, since February.

It is stated that the Americans intend to make a big bid for the British market when' the -, Olympia Show is staged. Some Of them, it is reported, have been fortunate in tho ballot for stands in the coveted position on the centre gangways. The British industry asked for a reduction of the t;ix by 10s per h.p., and the Chancellor intimated that, if 5s proved ineffective, ho might be prepared to go further to help them. But he will want to see a year's export figures' before being convinced, so that if the first 5s does provo ineffective it will not be until the 1936 Budget that the seeoud concession is made—to come into effect with the 1937 cars. America thus will have three years in which to re-establish themselves.

The uneasiness among manufacturers at Home is greatly increased by the