High Petrel Tax Criticised

Manawatu Times, Volume 63, Issue 44, 22 February 1938, Page 7

High Petrel Tax Criticised

VIEWS OF VISITING AMERICAN Per Press Association INVERCARGILL, Last Wight. The w isdom of high motor taxation in New Zealand w’as questioned by Mr. J. W. Cornett, of Massachusetts, United States, who arrived at Bluff yesterday by the Maunganui ou his return from a trip over the Milford track, during a holiday visit to New Zealand. The high duty charged on motor cars in the Dominion brought the cost to at least double that charged in America, he said. Consequently, fewer persons were able to afford curs. Further than that, the petrol tax was tremendously high and so greatly increased running costs that the use of motors was greatly restricted. In America it had been found that low costs resulting from mass production had brought car* within- the reach of almost all classes. Then cheap petrol male - running costs low. “In my State there is a petrol tax of only two cents a gallon and petrol sells at about 17 cents a gallon,” he said. “Cara are thus so cheap to run that they have become very popular and there are about 900,000 in the Btate. The small petrol tax of two cents a gallon produces sufficient revenue to pay for all roads in the State. I think your Government might well consider this lesson for I am certain that a smaller tax would eventually produce more revenue than the present crippling charge which I am told is about 20 cents a gallon.’*