THE INCREASED PETROL TAX

Nelson Evening Mail, Volume LXVI, 13 February 1933, Page 4

THE INCREASED PETROL TAX

1 THE idea that ownership of a motor vehicle—especially of a car—is ail indication of affluence, and implies pleasureseeking, still persists, and is apparently shared by the Government. Most carowners are justified as regarding their car as more a liability than an asset. The liability lias become increasingly such because of the attitude of the Government, which in its desperate pursuit of additional revenue finds an easy method of raising money in adding to the tax on petrol to such an extent that it has broken the world’s record in that direction. When the revenue thus raised was being devoted to the improvement of roads, users of motor vehicles more or loss quietly consented to the addition of one impost after another, but now that their payments are being confiscated for general revenue purposes and the condition of the roads is being allowed to deteriorate, they are protesting, and rightly so, against being singled out for still further taxation—an additional burden

on all sections of the community who are dependent in one way or another on motor transport. Although the greatest proportion of petrol used is that consumed by commercial vehicles, we prefer not to believe the charge that the Government by increasing the tax oil petrol. as apart from the general increase due to the artificially-pegged high exchange rate, was animated by a desire to assist the State-owned railways. It was the simplicity of the imposition that appealed. The injustice was disregarded. So was the fact that the excessive taxation must result in diminished consumption of petrol—especially on the part of private motor car owners. Tlieie is no need to stress the points made by the North and South Island Motor-As-sociations to the Minister of Finance and Customs, as published in this issue. But some further points made by the same useful bodies are worth quoting as indicating what tlie latest imposition means: That the ad valorem on pelrol is now in the vicinity of 400 per cent, more than double the ad valorem tax on any other commodity—essential or otherwise. That motor taxation lias been progressively increased since 1924 to such an extent that with the new tax added it can safely he set down for 1933 at an increase of 820 per cent, compared with 1924. That the whole cost of the road transport system has been increased enormously regardless of the imporance of cheap transport to tens of thousands of our citizens. That New Zealand’s petrol tax is now far and away greater than the tax in any other country in the world. That large numbers of people must he thrown out of employment because of the staggering cost of transport. That all road users, omnibus passengers, taxi proprietors, carriers, market gardeners, and farmers, as well as private car owners will be severely affected by this confiscatory taxation. That, worst of all, a class of the community—already overtaxed lias been singled out for grossly unjust and extortionate taxation. That clearly no regard has been given to equitable taxation, and it is obvious that the only reason for the onslaught is that the petrol tax is easy to collect. That the law of diminishing returns already operating will now operate at an accelerated rate. In reply to representations already made, Mr Coates has promised to keep a close watch upon the effects of the increased tax. We venture to predict that he will have good reason to do so.