HIGHER PETROL TAX.

New Zealand Herald, Volume LXVII, Issue 20619, 18 July 1930, Page 12

HIGHER PETROL TAX.

MOTORISTS APPREHENSIVE. APPEAL TO PRIME MINISTER. CONSIDERATION PROMISED. I [TiV TEl.K'Jl', A I'll. —SPEC I AT, HET'OnTEII.] I WELL J NT. TON, Thursday. ' Apprehensive <">f increased taxation, a deputation representing (lie New Zealand ■ I Motorists' Association interviewed the N Prime Minister, lion. G. W. Follies, to- ! ' day, and claimed that the payments ' I already required to he, made by motor-car ! owners constituted a sufficiently heavy I hurden. Mr. W. G. Walkley, who was ! tho principal spokesman, illustrated with ■ graphs tho steady increase in taxation on j the motorists. In 1929, said Mr. Walkley, the amount, | contributed to the national revenue by 1 motor vehicle owners was four times • greater than in 192.3, having grown from i £790,732 to £3,094,975. In 1923 the gross j I motor taxation equalled slightly more than j I ; one-fifth of the total income tax, but in I 1929 the gross motor tax, including petiol j tax, registration and licence fees, cus- . i toms duty, motor body duty, tyre tax, , I duty on lubricating oils, heavy traffic fees ■ ' arid primage, was £3.094,975, as against a total income tax of £3,319,877. Main Highways Revenue. 1 The volume of main highways revenue was rapidly overtaking the county rates, j and it seemed almost certain that in tho j vear ended March . ways revenue would be greater than those rates. Tho motor-car was no longer a luxury, but was as necessary in commcrcitl and social life as the horse, vehicle was 20 years ago. While it had been disputed in certain quarters that, beer was a luxury, tho fact remained that it was doubtful whether it was a necessity. J Nevertheless, if an additional tax of 3d a j gallon was levied on petrol, it would put 1 petrol on a par with beer as far as tax ' ! was concerned. ' i Mr. Forbes: There is water in beer. 1 ! Mr. Walkley said that to-day the buyer 5 ! of a new foreign car contributed £134 3s ' | to the national revenue, and the buyer of 5 j an English car £75 9s 4d. In reply to the question of increasing " I expenditure raised by the county councils, the motorists contended that if a good many of the counties amalgamated the resulting economy in administration would be largo enough to meet much of the increased expenditure. Furthermore, the majority of the counties last year had shown a credit balance on tho year's workings. Expenditure in Country. 3 Another matter that seemed to be overlooked by tho advocates of more petrol tax, said Mr. Walkley, was that 92 per cent, of the tax was spent on country roads and 8 per cent, on city roads, although a vast sum was contributed each year by city motor vehicle owners, who rarely, and in many cases, never, used the country roads. a The motorists were also contributing ? directly and indirectly toward the relief of unemployment. They paid a motor-body * tariff which made possible an industry that gave employment to a large number of men, and by the expenditure of money from the road fund they provided work j | for men who would otherwise be uncme ; ployed. This work was often done by j manual labour, when it could be done r ! more economically by machinery. 0 j The ownership of a motor-car did not ,f necessarily mean ability to pay, as there r was a very large number of people driving f vehicles who did not receive £7 a week j in salary. s Mr. Forbes said he had already heard a deputation from the farmers asking for the derating of lands and an increase in j the petrol tax, but he had told them he .j would hear what the motorists had to say ( . before deliberating on the question. The 0 increase of taxation was an unpleasant task for any Government, but, adverse conditions had to be faced. He would give the point raised his most serious consideration.