MOTOR VEHICLES.

Grey River Argus, 22 July 1926, Page 7

MOTOR VEHICLES.

AND CUSTOMS TAXATION. During the course of his speech t>» the Budget, Mr H. F, Holland said: — There is one class of imports which is subject to Customs Duty —a very heavy item —to which I wish to mak< reference. I mean the motor vehicles. Last year we imported motor vehicles to the value of over £6,120,000. Tht total value of the manufactures and repairs in New Zealand was a lit... ver £1,000,000, and I know that the main parts of motor vehicles cannot be produced in New Zealand. Personally, I would say that the parts oi these vehicles which cannot be manufactured here, should come in duty free. Members on the Government benches will say that it is only the rich men who use motor . cars. That is not wholly correct. My contention is that motor-ears, lorries, taxis, and the like, have their prices increased by reason of the Customs Tariff, and the extent of that rise, aud a good deal more, is placed on the cost of commodities pro duced in New" Zealand. In this way the cost of living is increased. We all know that motor vehicles are now being used as essential parts of the machinery of production and distribution in every country at the present; but if it were true that the vehicles were only used by rich people, then the better way to get the money from them is tho scientific method of the income'tax, instead of by the cumbersome methods of the Customs duty which allows the amount of the tax to be distributed over the rank and file of the people. Mr McLeod: Is it not passed on in ithe case of income-tax? Mr Holland: Of course, every tax is in the last analysis paid by the people who do the work, but the direct tax is always the best and most scientific, because it cannot be passed on to the same extent as an indirect one. If thir were not so, we would not find so much protest from certain interests against the imposition of direct taxes, or so much support in favour of indirect taxation