PETROL TAX

Inangahua Times, 27 February 1933, Page 2

PETROL TAX

AN IMPORTANT ANNOUNCEMENT GOVERNMENT NEGOTIATING WITH COMPANIES REDUCTION OF INCREASE TO Id PROBABLE (Per United Frans Anna.) WELLINGTON. Last Night. An Important announcement was made by Mr Coatee when replying to the second reading debate that the Government would reduce the petrol tax one penny while negotiations were being conducted with petrol companies with the object of Inducing them to carry one penny of the tax. Mr Coates admitted there was reason for some concern as to the effect of high tax on consumption of petrol. “We have been in negotiation with companies," he said. “Pretty hard th-nga have been said about the Companies hut to he quite frank I am not in a position—and that after carefu, inquiry—to say they are making high profits. ’ ■

He said that if negotiations W»~ succeasful the actual effect on motorists would he a reduction of the increase to a penny per gallon. The Bill was read a second time at 4. am. by 37 to 20 votes. Wellington. February 25 The opinion that the oil companies should carry some of the increased petrol tax was expressed in iba House by Mr M. J. Savage (Labour). “To anyone acquainted witb tha fundamentals of sound taxation, tha petrol duties cannot be justified,” declared Mr Savage. "The tax haa been raised in the first place to provide money for the construction of h'ghways, and has been earmarked for this purpose, but when tha Government got into difficulties, part of it was taken for the Consolidated Fund. Now a further is to be raised from this source, and for general revenue purposes. It does not appear that any member of the House will live to see the day when the tax will disappear. One wondets if the Government is going to do anything in the way of making the OirCompaDies bear some of the load of this taxation, They are surely able to carry some of it, and if they can be induced to shoulder some of the taxation, the result will be that those trying to make a living by carrying on a form of transport will have a better chaocs of making ends meet.

"It does not matter what is the form of taxation that is being applied today.” added Mr Savage, "we are overdoing it ! We cannot go on as we are going. Everyone is being sacrificed and everyone is tumbling over.”

“ He said that when it was sugges. ted that the wartime precedent should be followed for the purpose of putting men into industry, the reply was that the proposal was one of inflition No one talked about inflation during the war. The Government was hopeless. It would not attempt to reply to any suggestions. I' simply said it could not be carried on’. Tlte Government had already exhausted all forms of taxsfion but

it was possible that the Cabine', knowing it could notcariy on much longer, was having a final flourish, and was leaving its successors to cope with the mess which had been made.”