MR CHURCHILL’S TAXES

Evening Star, Issue 19856, 3 May 1928, Page 4

MR CHURCHILL’S TAXES

THE KEROSENE CONCESSION Trim Association—By Telsgraph—Copyright. LONDON, May 2. The oil companies announce that kerosene was reduced by 4d per gallon this morning, thus the tax on paraffin, which was expected to yield nearly £3,000,000 per annum, lasted barely a week, in which time between £60,000 and £70.000 was paid. Mr Churchill admitted _ that some minor confusion might arise, remarking that it was in consequence of the will of Parliament being made effective immediately. He added that he had been assured that the adjustments were not at present a serious difficulty. He did not state how the loss would be made up, but he definitely ruled out the withdrawal of the sugar concession or an increase in the petrol tax. It remains to be seen also what formula can be devised capable of continuing what Mr Churchill called the new chemical frontier between petroleum and paraffin. The ‘ Daily Telegraph ’ recalls that a few years ago when petrol was taxed Jmraffin was left untaxed. Paraffin was argely used as a substitute for the purpose of evasion, especially by heavy vehicles, using only a little petrol to set the heavy oil going. The ‘ Daily Chronicle ’ says that the simplicity wnich was one of the charms of Air Churchill’s original duty on light oils disappears, and large possibilities of leakage are opened to evade duty by mixing kerosene and petrol for commercial vehicles, or inventing road engines to run on a large proportion of nntaxed fuel. Invention moves quickly nowadays when the spur is given.—Australian Press Association.