PETROL TAX SURPRISE.

New Zealand Herald, Volume LXV, Issue 19931, 27 April 1928, Page 11

PETROL TAX SURPRISE.

INDIGNATION OF MOTORISTS. EFFECT OF RATING REFORM. Australian and N.Z. Press Association. LONDON, April 24. When the Chancellor of the Exchequer, Mr. Winston Churchill, left his house in Downing Street to go to the House of Commons to deliver his Budget statement, the police had to clear the way to enable him to pass through the crowd. He was accompanied by his daughter, Miss Diana Churchill. They walked down Whitehall amid cries of " Good old Winston !" A passing bus-driver called out: " What about beer and baccy?" The Chancellor was wreathed in smiles and waved a friendly hand. The surprises of the Budget were the petrol tax and the allowances off tho income tax for children. The petrol tax will certainly be vigorously opposed by motorists. The chairman of the motor section of the Liverpool Chamber of Commerce, Mr. Reece, describes the tax as " wicked and iniquitous," and says it will do untold harm, and keep a large number of cars off the road. Captain Malcolm Campbell, the well-known racing motorist, says be regards it as unfair to motorists, who are already heavily taxed. The registration tax, which is based on the horsepower of the car, is quite sufficient, in his opinion. Taxi-car owners and drivers say the tax will be simply ruinous. The Commercial Motor Users' Association estimates that the owner of an average goods traffic vehicle will pay from £4O to £SO a year extra for petrol. This, it says, is simply staggering, and will cost the General Omnibus Company more than £300,000 extra a year. It is expected that fares will be increased. Sir Robert Home, M.P., a former Chancellor of the Exchequer, says he is glad Mr. Churchill has taken the opportunity to bring out a comprehensive scheme for relieving staple industries. He regrets the necessity for taxing petrol, for this proposal lias prevented for the present the cancellation of tho tax per horse power on motor-cars, but the Chancellor says he has riot closed the door upon the alteration of this important duty. Sir Robert says rating reform has been favoured by all sections of the House of Commons for a long time, but the money has been wanting. The effect of the proposed reform would be that after October, 1929, all property used for production by means of manual labour would be relieved of three-quarters of the local rates, and that agricultural land, which is already relieved of three-quarters, would be relieved entirely, the local authorities being compensated by Exchequer grants. Owners of offices and private residents would not benefit in any way. The railways, which would benefit to tho extent of £4,500,000 a year, have agreed to pass on tho savings in tho form of reductions in freight charges.