BRITISH BUDGET

Hawera Star, Volume XLVII, 3 May 1928, Page 5

BRITISH BUDGET

TAX ON OILS. PRICE OF KEROSENE REDUCED POSSIBILITIES OF EVASION. (UNITED PRESS ASSOCIATION—BY ELECTKI. TELEGRAPH—COPYRIGHT.) (AUSTRALIAN PRESS ASSOCIATIONLONDON, May 2. The oil companies announce that kerosene was reduced by 4d per gallon this morning. Thus the tax on parattiu, wnioii was expected to yield nearly £3,000,000 per annum, lasted barely a week, in which between £60,000 and £70,u00 was paid. The lit. Hon. Winston Churchill, Chancellor of the Exchequer, admitted, that some minor confusion mignt arise, but added that he had been assured that the adjustments were not at present a serious difficulty. Mr. Churchill did not state how the loss would be made up, but he definitely ruled out the withdrawal of the sugar concession or an increase in the petrol tax. It remains to be seen also what formula, has been devised capable of continuing what Mr. _ Churchill called petroleum and l paraffin. The “Daily Telegraph” recalls that when petrol' was taxed paraffin, was left in i taxed. A few years ago paraffin was largely used as a substitute for the purpose of evasion, especial! v by heavy vehicles using only a. little petrol to set their heavy oil going. The “Daily Chronicle” says that the simplicity which was one of the charms of Mr. 'Churchill’s original duty on light oils disappears, and, the large possibilities of leakage are opened to evade duty by mixing kerosene and petrol for Commercial vehicles or inventing road engines to run on a large ■proportion of untaxed fuel. Invention moves quickly nowadays when the spur is given. NO PREFERENCE TO EMPIRE • PRODUCTS. LONDON, May 1. The Rt. Hon. Winston Churahill, in answer to a question in the House of Commons, said that he had carefully considered admitting Empire hydrocarbon oils free, or at a reduced duty, but the practical benefit of preference to heavy oils would be negligible, while it would greatly complicate the working of the tax. He had therefore decided against the preferential duty. RESOLUTIONS DISCUSSED. KEROSENE EXCLUDED. (BRITISH OFFICIAL WIRELESS.) RUGBY. May 1. The Budget resolutions dealing with the taxes for the current year were considered by the House of Commons to-day. The Rev. J. Barr (Labour) moved a reduction of the duty on tea front 4d to Id per pound, arguing that the duty was one of the indirect taxes that notably was felt by the poorer classes.

Mr. A. M. Samuel, Financial Secretary to the Treasury, resisted the motion. He expressed the opinion that the tea duty was not onerous, as it represented only 2s 6d or 2s 7cl per head per year. Incidentally he mentioned that the clearances of tea in this country last year were 402,000,000 pounds, of'which'33l,ooo,ooo pounds were Empire tea. Before the war Empire tea averaged 261.000,000 pounds a year. Of the tea not Empire grown 15 per cent came from Java, and only about 3 percent from China. The motion was rejected. When the resolution imposing a new Customs duty of 4d per gallon on hydro-carbon oils was reached, Mr. Winston Churchill. Chancellor of the Exchequer, announced that he would introduce an amendment excluding kero.se nt from the scope of the duty. He admitted that lie was talcing this step as the result of representations which had been made to him from country districts where electric light and gas were not available and kerosene was largely used for lighting and cooking. He said that a. case of hardship and of detriment to the “cottage budget” could undoubtedly lie. made out. Iverosent. being now' excluded from the scope of the duty, the latter would apply only to the products of petroleum. His amendment would involve a reduction of £3.000.000 in the Budget Estimates, and he would have to study the new situation before the second reacyng of the Finance. Bill.