Says Petrol Tax Being Used Wrongly

Northern Advocate, 12 June 1942, Page 2

Says Petrol Tax Being Used Wrongly

Criticism of the Government’s action in using receipts from the petrol tax for the Consolidated Fund and the War Expenses Account was made by the chairman of the Whangarei County Council <Mr J. A. S. MacKay), in his report presented to the annual meeting today. “Ever since the introduction of the Main Highways Act this council has agreed that 'a tax on petrol is an ideal form of taxation for financing the construction and maintenance of roads, and it was for this purpose alone that it was intended by the Government which introduced the system.” stated the chairman. “Now. however, the greater part of the tax is used for the purposes of the Consolidated Fund and for the War Expenses Account. “For such purposes such a tax reacts most unfairly on our backblock settlers and retards settlement in those areas, making the use of lime impossible and the use of manures difficult, making for the rapid deterioration of these lands. One example in this county is the Upper Mangakahin, where Government valuations have dropped very materially in recent years. To illustrate how unfairly the tax operates to the disadvantage of the backblocks when used for other than reading purposes, one has only to consider the case of a settler living 40 miles' from railway or port. This man would pay just 20 times as much petrol tax for the transport of hie goods than a man living within two miles of these points.