DUTY ON ENGLISH COMMERCIAL VEHICLES.

Evening Star, Issue 21785, 30 July 1934, Page 2

DUTY ON ENGLISH COMMERCIAL VEHICLES.

TO THB EDITOR. Sir—Under the resolutions it is proposed that the duty on; English motor cars when imported ■•.unassembled' or completely knocked down ■ is to_be /i per cent., whereas the .duty on English lorries is to he 15 per cent. 11 ould the Minister of - Customs kindly state - why » decided preference should be given to pleasure cars' as. against .commercial vehicles? It would appear that the Minister has overlooked the important fact that where a manufacturer makes both cars and commercial vehicles he frequently'uses components common to both, such as engines, gearboxes, etc. iWho, therefore, is to say into which vehicle a part common .to both is to 6 °Frequently car chassis are sold for delivery vans, etc. At present this type would pay 7} per cent., and yet be sold for another purpose, thus avoiding .the additional 7f per cent. ■ ' " By increasing the duty as proposed from 10 per cent.' to 15 . per cent, on genuine: English.' commercial vehicles, the amount.-of sales tax'is also m-, creased accordingly. Because the duties on commercial vehicles ,as well ias tyres and spare parts are increased the cost of transport services to/the community must be increased considerably. . •■., I ,■■■.- .; < These resolutions are quite contrary to Mr Coates’s statements in his capacity’ of Minister of Transport .that transport costs must come down. They are also contrary to the Tariff Commission’s own recommendations, which state,- inter alia: “The commission is of opinion that owing to the; importance of the transport industry it is de- ' sirable: that the 'cost of vehicles to the public, should be reduced to a minimum, ■The industry at present, contributes largelv to the revenue by way of petrol duty, etc. If, therefore, revenue .conditions permitted, we are -of opinion that motor chassis and motor vehicles should he admitted free of duty under the British preferential , tariff.; It is hoped that Mr Coates, who is both Minister of Customs and Transport, will see his way to rectify' this grave injustice to the genuine manufacturer of English commercial vehicles. —I am, e t c .. Genuine English. ■\Vellingt9n, July 26.