PETROL TAXATION

Greymouth Evening Star, 21 September 1946, Page 3

PETROL TAXATION

MOTORISTS DENY MINISTER’S CONTENTION PURPOSE OF REVENUE Strong exception is taken by .the North and South Island Motor Unions to a statement, reported in the newspapers to-day as having been made by -the Minister of Finance (Mr .Nash) in the House of Representatives, that the original purpose of which petrol taxation was imposed was not for road purposes,” says a joint statement issued from the annual conference of the South Island Motor Union in Christchurch yesterday, at which senior officers of the North Islnad Motor Union were present. “In contradiction, we would refer the Minister to the following acts:—The Motor Spirits Taxation Act, 1927, section 9 (the original petrol tax act), and the Finance Act, 1930, section 38 (main highways), which provides for the payment of meter spirits taxation into the Main Highways Revenue Fund. In this action the North Island Motor Union is fully associated. The president (Mr W. R. Carey) said the Minister’s contention came as a bombshell; but he believed it could be refuted. After the last general meeting of the union the case of motorists, claiming the lifting of wartime taxes and the application of money derived from motorists to the purposes of the Main Highways Board, had been carefully prepared. After some skirmishing to obtain the consent of the Prime Minister (Mr Fraser) to receive a deputation, the case presented. The Main Highways Board had received some relief in the Budget by the wiping off of some interest on loans, but there was a long way to go. yet. It was agreed that members of the executive should consider making a 1 tiller contradiction to the claims of Mr Nash that petrol taxation was not originally intended for the improvement of highways.