NO EXCISE DUTY

Evening Post, Volume CXXIV, Issue 27, 31 July 1937, Page 10

NO EXCISE DUTY

BENZOL FROM COAL

ENCOURAGING PRODUCTION

(By Telegraph—l'ixss Association.)

CHRISTCHURCH, This Day,

To encourage the production of motor spirit from New Zealand coal, the Government has decided not to impose an excise duty on benzol produced as a by-product of domestic town gasworks. The exemption will be limited to a total quantity of 500,000 gallons a year, subject to the condition that substantially all New Zealand coal is used in its production. There is a statutory provision for the imposition of excise duty on benzol produced in the Dominion, but up to the present this has not been invoked in regard to the quantity at present produced, which is approximately : 20,000 gallons a year. '■■..■...:'■';■'■" '■■ ~ . ' ■ ■;

In making this announcement today, the Minister of Mines (the Hon. P. C. Webb) said that benzol was being produced principally by the Christchurch Gas Company, and it was hoped that the definite assurance that up to 500,000 gallons of this spirit would be exempted from excise duty would have the effect of increasing consumption in New Zealand, and also adding to the fuel oil supplies of the Dominion. The benzol produced at Christchurch had proved highly successful, said the Minister, especially when mixed with other grades of petrol, and a considerable quantity was used for aircraft. He hjped that as a result of the Government's action Impetus would be given to local industry and larger quantities of New Zealand small coal would be used.