REDUCTION URGED

Evening Post, Volume CXXVI, Issue 82, 4 October 1938, Page 10

REDUCTION URGED

MOTOR TAXATION

Regret that there had been no relief in motor taxation is expressed in the annual report of the Automobile Association (Wellington).

The report states that taxation for the Government fiscal year ending on March 31, 1938, produced from the three sources enumerated a total of £4,523,484, made up as follows: —Motor registration and licence fees, £556,479; tyre tax, £158,526; petrol tax at 6d gallon (the above amounts are paid into the Main Highways Account), £2,085,311; motor spirits taxation at 4£d, paid into the Consolidated Fund, £1,723,168.

Strong representations were made to the Minister of Finance for the remission of the 4£d petrol tax, but the Minister indicated that he was unable in any way to reduce the taxation, continues the report. The North and South Island Motor Unions had decided to make further representations to the Government, because they were of the opinion that this 4&d petrol tax, used for general purposes, is an unfair levy against a section of the community.

Main Highways Board expenditure last year totalled £4,113,000, this being a record. In consequence, motorists were receiving much better roading conditions, but the executive was concerned that these improvements were being brought about largely by the use of capital funds, as a result of which interest charges against the Main Highways Account were steadily mounting, and last year totalled £339,000, One argument which had been advanced in favour of the utilisation of capital funds for road construction was that the type of work being done today was of a permanent character. There could be :'no greater fallacy in regard to the construction of roads, particularly when a review was made of the advance in motor vehicle design and speed taken in conjunction with the increase in the number of vehicles now registered. At no stage had any road construction policy overtaken the demands made by motor vehicles, and it had been shown clearly over a period of years that obsolescence played a most important part in the depreciation of the roading system. Motor vehicle traffic had doubled during the past decade, and it was safe to say that it would double again during the next 20 years. A,t the same time there would be further improvement in motor vehicle construction, and all these facts made it manifest that there was no such thing as a permanent road or a road which would meet Jfcrafflc demands for all time,