NEW MILEAGE TAX

Evening Star, Issue 21358, 11 March 1933, Page 3

NEW MILEAGE TAX

FAIR BASIS OF CONTRIBUTION EXPLANATION BY MR ANSELL IFrOM OtJlt I’ISLIAUSNIART RXPOSTEB.] WELLINGTON, March 11. When motoring matters are before Parliament the opinions of Mr A. K, Ansell, member for Chalmersj are followed vyith close attention owing to his thorough knowledge of affairs. However, the extraordinarily long sittings of the House when the recent Finance Bill was being considered evidently caused Mr Ansell to refrain from speaking on the interesting topic of the new mileage tax for road purposes, which will be imposed on motor vehicles not using petrol. The ‘ Star ’ correspondent therefore sought the views ,of the member for Chalmers, who stated that the special tax on certain vehicles not propelled by motor spirits is designed to ensure that all mechanically-propelled road vehicles pay their fair propotionate contribution to road costs. The development of motor engines using other than petrol is progressing, and the near future may show still further advances in engineering science; therefore it becomes necessary to arrange that if petrol, which is taxed, is not the propelling power there be an equivalent tax levied on nonpetrol vehicles using the road. If this is not done the problem of unfair competition immediately arises. “ The economic value of any given type of vehicle can only bo determined by taking into consideration all operating costs, including special taxation. If any class of vehicle avoids its share of taxation that load must be borne by others,” intimated Mr Ansel). “The purpose of motor taxation is to ensure such payment as is consistent with the use made of the road.” ROAD COSTS AND TAX YIELD. “ Investigation by the Transport Department shows that maintenance road costs are one-third of a- penny per ton mile; therefore the reading costs of, say, a six-ton load are 2d per mile. A comparison between taxation paid by a heavy motor vehicle of a gross weight of six tons using motor spirit as fuel and a similar truck using heavy oil is interesting. Motor truck using motor spirit as fuel— Annual license fee £2 2 6 Heavy traffic fee 27 4 0 Motor spirit tax, 2.000 gal at lOd ’ 83 6 8 Total £ll2 13 2 Motor truck using heavy oil as fuel— Annual license fee j,. ... £2 2 6 Heavy traffic fee 27 4 0 Total £29 6 6 The above figures are based on an annual mileage of 20,000 and a performance of ten miles per gallon of petrol. “ It is obvious,” continued'Mr Ansell, “ that machinery to remedy this anomaly was required. It was the duty of the Government to declare its policy in this matter immediately, for the reason that the efficiency of Diesel-engined road vehicles suitable for heavy traffic is now being demonstrated in New Zealand. The cost of these vehicles is considerably in excess of the usual type of heavy vehicle, and it is apparent that lower operating costs must be an important factor in any proposals for use of this type. If purchases of this machine were made because of lower' operating costs and it then became apparent that the Government had contemplated dealing with an equivalent road tax, buyers would have had just cause for complaint. With the increased tax on petrol the incentive to use motive power other than petrol is greater, but as motor vehicles which find their motive power in fuel oil are obviously rseponsiblo for an equal wear and tear of the roads they should not escape adequate taxation. This anomaly, which was not sericus when the petrol duty was smalj, now demands correction. A fair basis of contribution to reading costs by ron-petrol vehicles is aimed at in the recent legislation, and in my opinion meets the position in an equitable maimer.”