PETROL PROFITS

Northern Advocate, 20 March 1931, Page 3

PETROL PROFITS

TAXATION (SCHEME.

(Per Press Association. —Copyright.) WE L LTNO TON, Tins Day. A proposal to raise revenue from petrol companies iu preference to reducing Civil Servants’ salaries was made iu the House of Representatives last evening by Mr W. J. .lordan (M'amikau). Mr Jordan said the cost of landing spirit in New Zealand amounted roughly, to (Id a gallon. The duty was (Id, and petrol was delivered to the retailor at tlie main centres at I/O, halving a profit of !)d for the company. Tlie retailer sold the spirit, at the main centres at 2/ a gallon, and if a profit of .‘hi a gallon was sufficient for the man who had to keep a station open day and night to sell in three or four gallon quantities, surely a similar profit should be enough for the companies, who delivered the spirit in large quantities. On the basis of allowing this profit to importers, it would be possible for the Government to increase the duty by (id a gallon and obtain additional revenue of £1,800,000. Even if the Gov--1 eminent sought to give motorists the benefit of reduced prices', and charged only the additional 4d duty, it would still be possible to raise £1,200,000. This would be subject to certain reductions in the way of sales of spirit not used on roads, but oven then it would provide the amount it was proposed to save by the reduction of wages in the Civil Service. I