PETROL TAX

Evening Star, Issue 19712, 12 November 1927, Page 12

PETROL TAX

RELIEF FOR SMALL TRADER HO DUTY BEFORE NOVEMBER B MANY SHIPMENTS EXEMPT. [Fbou Our Parliamentary Reporter."l "WELLINGTON, November 11. Legislative effect was- given to-night to a request made by small traders that the petrol tax should not apply to any spirits shipped on or before November 8. This was done after midnight, when the Minister of Public Works introduced the necessary amendments to the Motor Spirits Taxation Bill. One amendment provides that, where any duty has been'paid in respect of any motor spirits exempt from duty, the Collector of Customs shall, without Luther authority, allow a refund. Tims the position is that duty will not be. payable unless the petrol was shipped on or after last Wednesday. It was explained to the House that this had been done to meet the small supplier who was not ready to compete . with the largo trader, who had big stocks in Now Zealand. Small traders had said that if this alteration were made they would he quite satisfied.

Mr Fraser (Wellington Central): Yon are quite satisfied that the public will get the benefit? The Minister of Public Works (Mr Williams) said ho believed the importers were trying to do a fair thing, As far as ho knew duty was not being charged the public on any petrol on which duty had not been paid by the dealer. The dealers had been very fair, and had not taken advantage of the pubhlic, as they might have done. Mr Savage (Auckland West), said he had a letter from a small company which' complained not of what was on the water, but of what was actually here. Big American concerns with largo stocks would be able to sell for some iime without charging the tax, while the small trader, living from band to mouth on small stocks, would have to be charging extra or bearing the loss himself.

Sir Joseph Ward: But this amendment meets what you complain of. Mr Savage contended that big firms with millions of gallons in store would have the best of it, because the small man would be paying the 4d while his stocks were on the water. The company which had written him had suggested that the tax should be charged on sales. It seemed clear that the big man could go on selling without charging the tax, and the small man would bo forced out' of business. Mr Coates said this amendment would enable the small man to keep his customers. Mr Savage: But it seems to make it worse, because the big fellow is on the water too with more supplies.

Mr Coates: Well, the traders arc satisfied, anyhow. This is what they asked for. They say that if they can have this concession their stocks will just about seo them through. Wo don’t like to Jose £60,000 or £70,000, of course, but wo don’t want to bo closefisted or mean about if. Pm bound to say that nothing could have been more pleasant than dealing with the hulk-holders, and the case men ton. They looked at it in a very broad, fair way, and the public can depend on it .that they will give them service. It stood to reason that there had to ho stores in New Zealand. They were essential stores, and served a valuable purpose. We considered the question of making a charge on all petrol sold, but it would have been so very difficult, and big overhead charges would have been piled up. It is best as it is, and meets the position. It will carry them over till New Year, and by that time, or perhaps sooner, they will have arrived at a time when all will he paying their 4d, and everyone will be on an even break.

Mr AVilford (Hutt) said ho was satisfied that the fair thing had been done. After all, if the big trader hod large stocks, ho was entitled to any advantage. Mr Sa,vage asked what guarantee the House had that the people holding large stocks did not know that this duty was to be imposed. Did not the Minister of Customs have the power to prevent unduly large clearances? Mr Downie Stewart .agreed that that was so, “ but,” he said, “ I did not want to take a week to get the thing through ” (Laughter.) Dir Savage said that if the Minister of Customs agreed with him, he must be in fairly good company. (Renewed laughter.) The Bill was- read a third time and passed.