HORSE-POWER TAX

Evening Star, Issue 22072, 4 July 1935, Page 9

HORSE-POWER TAX

IMPOSITION NOT LIKELY OPINION OF OTAGO ADMINISTRATOR The “ persistent rumours ” in Wellington of an imposition of a horsepower tax on motor vehicles have not reached Dunedin, where motorists decline to give credence to the reports. At the meeting of the A.A. (Wellington) the president (Mr Batt). said that he could not get to the bottom of the rumour. The horse-power tax had general opposition in England, where it was recently reduced from £1 to 15s per horse-power. If it were introduced in New Zealand either the petrol tax would have to be reduced or motorists would have to pay an enormous tax. There seemed to be a very strong rumour that there would be a move- to introduce it, but he expressed the opinion that a petrol tax was the better form of taxation, as a horse-power tax was paid whether a car was used or not. “At a conference in Wellington about two years ago the question of a horse-power tax was brought up, and the motoring organisations were then given an assurance by the Hon. J. G. Coates that he would not introduce such a-tax,” said Mr J. L. Passmore, when. ; interviewed. (< Mr Coates said that the tax was inequitable, and he wanted to charge the motorist in proportion to the damage done to the road.” Through the petrol tax, the inotorist now paid for usage, not possession, said Mr Passmore. A horse-power tax hit hardest the working man or the man of only small means, who used his car for taking his family into the country for the week-ends. He bought a sec-ond-hand large car, which was cheaper to-day than a light vehicle, and might travel only 1,000 miles a year If the horse-power tax were introduced, he would have to pay between £2O and £25 annually, while a man with a 15 h.p. car covering 25,000 nines would escape with a payment of £ls. Ine tax was unjust. ' “Under the system of petrol taxation, a motorist pays for usage of the road,” said Mr Passmore. “ The faster he travels, more damage he does, and more petrol he uses. The motorist wlio drives at a moderate speed does not damage the road, and he pays proportionately, as he uses less petrol. _ The sum of £2 a year for license fee is an ‘availability’ charge, which provides for the keeping of the roads, and the motorist pays through the petrol tax for the use of the road. It is the fairest method of taxation.” Another motoring administrator declared that the Government would not dare V) impose a horse-power tax, which would raise the greatest outcry from every car or lorry driver. Taking the average horse-power as 10, motor car owners would be taxed to the extent of more than £1,500,000 annually, a sum greater than that, collected at nresent bv petrol taxation on all users of the road. He described the Wellington report as being “ only a passing sensation*’’ ~ ,