TAX ON TYRES.

Hawke's Bay Tribune, Volume X, Issue 44, 4 February 1920, Page 4

TAX ON TYRES.

NOT APPROVED BY TAXI OWNERS NAPIER RESOLUTION. , The matter of the proposed tax on motor car tyres was discussed at a meeting of the Napier taxi-car owners last evening. The following resolution was carried unanimously, and it was decided to forward the same to the Hawke’s Bay Automobile Association with a request ' that the matter be brought under the notice of the Minister for Internal Affairs: —‘‘That, the Napier Taxi Owners’ Association strongly objects to the proposal to impose an import duty on motor cars on the following grounds: — T. The professed object of the tax is the improvement of the roads of the Dominion. 2. Taxi-cabs for the most part use only the streets of the. city, where the roads are little affected by the running of motor cars. 3. The taxi-driver use three or four times as many cars as private owners4. As taxi-driving is. their means of livelihood, it is essential that Hie tax should be one that will not impose upon taxi-drivers a disproportionate share of the burden. . 5. Assuming, that the object of the proposed tax is to provide money for the improvement of the reading system of the Dominion it is desirable 'that any tax should be one, the whole proceeds of which will go to the roads. 6. It is that there are about 30.000 cars in the Dominion, and that these will use an average of five or six tyres a year. The average landed cost of these tyres will not be less than £5 each. That means a sum of £15,000 for tyres in a' year. Twenty per cent, duty will represent £15,000. and by the time these tyres reach the consumers the importers’ profits on the duty, as well as the retailers’ profits on the«dutv_ and on the amount of the profit will be added. On the basis o£ ' allowing 20 pw cent, for importers." profits and 33| per cent, for the retailers, there will be a sum of £9OOO per annum paid by the consumers, aa profits on the duty going to. the importers and retailers, and being thus lost to the roads. 7. The Taxi Owners! Association would approve of a direct annual tax on cars all of which tax would go to the roads. It was decided to forward copies of the resolution to all other Owners’ Associations asking for action.