Motor Taxation

Manawatu Times, Volume LII, Issue 6454, 11 November 1927, Page 6

Motor Taxation

A closer study of the provisions of the “ Motor Spirits Taxation Bill ” and its criticism confirms the opinions we have voiced, in a previous article, that notwithstanding the soundness and justice of the principle underlying this particular form of taxation, the degree to which it is proposed to carry it out borders dangerously on the extreme. The Dominion is apparently approaching a period in its national existence where the imposition of three quarters of a million taxation of a purely sectional character is being looked upon as an ordinary everyday occurrence. To such an extent has motor taxation increased in New Zealand during the last year or two that with the inclusion of the petrol tax the 135,000 motor vehicle owners in the Dominion arc asked to find in the vicinity- of £1,080,000 annually by way of special taxation. ..

The Minister for Lands, Honorable A. D. M‘Leod, contended that the users of cars were the most insistent in the demand for better roads. This is only true to a certain degree. The main pressure and the more insistent demands come not from motorists but from various local bodies. The motorists appreciate the good work accomplished by the Main Highways Board, but recognize that Rome was not built in a day. The chief trouble is the constant clamour and keen competition by local authorities to have some particular road of theirs declared a main highway. It must not bo thought that these demands will grow less with the taking over of additional roads or that the additional taxation will suffice to satisfy all wants. Requests for assistance will in fact become more insistent as the Board’s resources increase, proof of which may already be found in suggestions for the Board to take over highways such as the Hutt road, etc.

In reply to Mr. M'Leod, Mr. Wilford said that the Government and the Main Highways Board were not going too far but too fast. This may be said to be the general opinion throughout the Dominion. It is not a question whether New Zealand roads can do with such a large annual sum for construction and maintenance, but whether the economic position of the country is such that it can afford to carry out such an extensive reading policy. It was for this reason a few days ago wo suggested that the Board would be well advised to make haste slowly. There is obviously need for the improvement of many subsidiary roads, but whether this improvement can be brought about at the rate suggested by the Government’s taxation proposals is a highly debatable question.

There exists just a shadow ol suspicion in the minds of a great number of people concerning the sincerity and disinterestedness of the Government’s motives in this its latest taxation venture. This suspicion has found expression in the speeches of several members of Parliament during the recent debate. The question was asked as to how much the petrol tax was going to save the Government in its Public Works expenditure on the maintaining and constructing of roads. There is also the feeling that the petrol tax is being imposed to penalise those who are using the roads in competition with the railways. Naturally both these soft impeachments were resented and repudiated by the Minister in charge of the Bill. Should the Government, however, have any illusions in this respect it should keep in mind that the extensive improvements it is intended to make in our main highways will undoubtedly have the effect of making road competition more intensive and more effective.

A factor of vital importance in the Motor Spirits Taxation Bill is the exemption of all petrol except for road purposes. Simplicity and facility of collection are essential to the soundness of any taxation scheme, and in connection with the exemptions provided for by the Bill under review, we can sec real difficulties ahead. It will be almost an impossibility for a farmer using petrol for various industrial purposes, as well as for a motor-car, to make a conscientious deposition as to quantities used. The same applies of course to other industries. The penalty provided by the Bill, including imprisonment, for wrongful declaration, provides a further opportunity and incitement to break the law.

In view of these facts we feel inclined to support a contention that the general interests of the country would be better served if the petrol tax were reduced from 4d to 2d per gallon and were universally collected without exemptions, or as an, aflernative, if kept at 4d, remit all other taxes on motor vehicles.