TAXATION OF MOTORS.

New Zealand Herald, Volume LXI, Issue 18885, 6 December 1924, Page 11

TAXATION OF MOTORS.

» NEW SOUTH WALES BILL. A FLOOD OF CRITICISM. PROBABLE BRITISH PREFERENCE. [FROM OUR OWN CORRESPONDENT.] SYDNEY. Nov. 27. The bill now before the New South Wales Parliament imposing new motor taxation has evoked a flood of criticism, which is not unnatural, for taxation is never popular, and any proposal to alter a form of tax always invites comment. An analysis of the rates reveals that the smallest cars, which, from tho lightness of their construction and the low enginepower, restrict their activities as far as possible! to the best roads, will have an addition of anything up to nearly 150 per cent, on the amount now levied. Conversely, the heaviest cars, which, according to the ideas of most road authorities, are the most destructive of road surfaces, will escape proportionately far more lightly. Of the English makes of cars, the increases in taxation range from 10 per cent., in the case of one car only, which weighs 12cwt,, to more than 133 per cent, in the case of a car weighing 17cwt. With the exception of the solitary instance of the 10 per cent., the increases are in no case less than 65 per cent., whil» in the case, of 12 makes the increases are 90 per cent, or over, and in eight cases, over 100 per cent. The object of the tax, of course, is to - raise revenue for tho upkeep of the roads, but the bill in its incidenco will have to bo much amended to meet with general satisfaction, assuming that people are satisfied at any time to pay increased taxation. A tax on petrol, which would be really a tax on the mileage covered, has been suggested and dismissed, as an alternative to the tax on the weight of the vehicle. With more insistence a tax on tyres has been proposed. It is argued that as the • life of tyres depends upon tho number of miles covered, such an impost would be according to th« use made of roads. But it has been pointed out that a customs tax could not be imposed by the State Parliament on imported tyres, and that a tax on locally-made tyres would be an excise tax, which would also be beyond the competency of the State legislature. It is highly probable, following an amendment in the Assembly, that the bill will finally provide for preference to British cars, which means that motor vehicles made wholly within the British Empire will pay tho rate fixed, less a reduction of 6d per half cwt. on their

weight. This will have a marked effect on reducing the taxation on British cars, which will include Australian or Canadian vehicles wholly made in these coun-

ries.