Motorists And Taxation

Northern Advocate, 19 December 1938, Page 6

Motorists And Taxation

THERE will be general relief among motorists at the official denials given by Ministers of the Crown to rumours that an increase in the price of petrol was probable. Such rumours have been persistent lately, but the Hon. I). G. Sullivan, as Minister of Industries and Commerce, says he has not been approached by the peitrol companies with any request for an increase in the price, while the Minister of Finance, the Hon. Walter Nash, contradicts rumours that the Government is considering an additional tax which would cause the price of petrol to be raised. Petrol in New Zealand is already taxed far more heavily than in most other countries in the world, the actual amount in taxation being 10£d. per gallon, so that every time a gallon of petrol is poured into the tank of a motor ear, ifche purchaser is literally pouring nearly 50 per cent, of the price into the coffers of the State, It is certainly true that a''large proportion of the tax is returned to the motorist in the form of expenditure on highways, but there is still a feeling that a breach of faith has been committed by, successive Governments for it was originally intended that .the whole of the proceeds of (this tax should he devoted to road improvements. The report of an imposition of a horse-power tax is also denied by Mr. Nash. Such a tax would be grossly unfair to residents of outlying country districts, whose road access is had, for while road conditions in most parts of New Zealand are now such that the smallest eype of ear • may he operated in comfort there are certain types of country road on which it is still desirable to have a powerful machine. The petrol tax already serves the same effect as a, horsepower, tax for the heavier and more powerful cars use more petrol, and so their contribution to the Exchequer is proportionately greater. The (taxation on all classes of motorists, however, is heavy enough as it is, and it Would he difficult to justify any addition to it.