MOTOR TAXATION

Gisborne Herald, Volume LXX, Issue 21260, 24 November 1943, Page 4

MOTOR TAXATION

“UNFAIR INCIDENCE” COMPLAINT BY UNIONS Reasons why the North and South Island Motor Unions consider motorvehicle owners have been harshly treated in regard to taxation are given in a circular letter which has been sent by them to members of Parliament. Stating that the total of Automobile Association members in New Zealand is 92,879, the circular gives information concerning the activities of the unions and what they hope to achieve. It is signed by the president of the North Island Motor Union, Mr. A. Grayson, and the president of the South Island Motor Union, Mr. W. R. Carye. . Regarding fuel and rubber supplies, the unions state that confidential information given from time to time has helped them to repress dn agitation for increased rations when they were not warranted by the stock position. They have not recovered, however, from the feeling of disquietude engendered by evidence that fuel was on the list of imports to be rationed before any shortage due to war eventuated. Position Made Worse Dealing with taxation, the letter states:—"ln the early stages of the Main Highways Board’s operations, the Public Works Fund made a grant to the board of £200,000 per annum in recognition of the relief given to the fund. A total of £1,266,000 was granted in this way. Not only was the grant stopped, but when the Government became pressed for money it charged the board interest on these ‘tree’ grants. The position is now made worse in that by section 5 of the Finance Act, 1943 (No. 2), these amounts became a debt due by the board to the'Consolidated Fund.

“Since the introduction of the petrol tax in 1927 the motorists have paid .£42,000,000 under that heading. Of this amount £20,500,000, or less than one-half, has reached the main highways account, the remainder, £21,500,000 having gone to the Consolidated Fund and the War Expenses Account. While the consolidated Fund has had the benefit of that amount of motorists' money, the Main Highways Board has had to borrow £13,000,000 to meet construction costs on main highways, and the interest and sinking fund payable by the board amounted to more than £soo,ooo>a year. “Although petrol tax was originally intended jis a roading tax, only sixpence of the present tax’of Is 2.7 dis allocated to the Main Highways Board. Of the excess, 4.7 d goes to the Consolidated Fund and 4d into the War Expenses Account. The motor unions continue to press for the rectification of this palpably unfair incidence of taxation.”