MOTOR TAXATION

Manawatu Standard, Volume LVIII, Issue 229, 26 August 1938, Page 6

MOTOR TAXATION

YIELD STEADILY INCREASES. UNFAIRNESS ALLEGED. “It is with regret that I report that the Minister of Finance nas not seen his way clear to meet in any respect tho representations made to him to relieve the motorists or their unfair taxation,” stated the president of the North Island Motor Union (Dr E E. Porritt) in his annual report to the conference of that .organisation held at Hawera to-day. “As was pointed out in the last report,” he added, ‘the taxation yield per vehicle continues to increasej and the emergency petrol tax imposed at a time of severe financial stringency has not been removed. In September last a large deputation representing all automobile associations in New Zealand waited upon the Minister of Finance asking that effect lie given to the following recommendations':—- „ i „ “That the levy of 4Jd per gallon on motor spirit for general purposes be abandoned. „. “That the 92 per cent., of 6d per gallon* assigned to the Main Highways Board lie for its exclusive use in reading purposes, and subject to no diveision whatever. “That an investigation be made into the reasonableness or otherwise ot amounts paid to the Post Office for services in connection with registration and licensing of motor vehicles, including the issue of number plates. “That 5s be. the charge for the first driver’s license, hut that the cost of subsequent renewals be 2s 6d. “That the principle of charging heavy traffic fees be affirmed, and that their collection be undertaken on a national basis, the proceeds being paid to the Main Highways Board lor subsequent allocation to its own revenue fund and to local authorities on a basis to be determined between them. . “That if the inspections of motor vehicles called for in connection yitb the issue of certificates of fitness arc carried out bv the Transport Department and the traffic -departments of city councils, the funds ncessnry be provided from the proceeds of existing motor taxation. . “That amounts for interest and amortisation relating to the reading debt in New Zealand he not charges against funds provided by motor taxation. , . - “That either tlie annual charge of £61.300 perai nst the Main Highways Account for past ‘free’ grants lie abandoned, or that an amount of £1,532,000 (the annual charge capitalised at 4 per cent) lie given tof the Highways Board to assist in overcoming the obsolescence of existing highways and to justify this annual charge. *

“That the proceeds of motor taxation be not used to finance rebates of rates or other relief to local body ratepayers. “That tlie present method of specific assignment of the revenue from motor taxation to the Main Highways Fund be continued. “That the use of revenues derived from motor taxation, with the exception of Customs duties on vehicles and parts and on lubricating oils, for other highways purposes be definitely discontinued. “It was not until June 20 last that the Minister replied,” Dr Porritt added, “and then it. was to the effect that it was not nossiblb to make any alterations’. "This reply is particularly disappointing to the large body of motorists who wore represented at the deputation-to the Minister. The taxation of petrol for . general purposes when it was first introduced was'said to be an oemrgenev measure, and the retention of the " present system of taxation against motorists is inequitable and therefore unfair.” *