MAIN HIGHWAY FUNDS.

New Zealand Herald, Volume LXIX, Issue 21112, 20 February 1932, Page 11

MAIN HIGHWAY FUNDS.

PETROL AND TAXATION. DEDUCTIONS FROM REVENUE. SERIOUS • POSITION REVEALED. [BY TELEGRAPH. —FRESS ASSOCIATION. ] THE CHATEAU, Fridny. A rumour that a greater raid than previously would be experienced by the Main Highways Board's funds was referred to at the half-yearly meeting of tho North Island Motor Union tonlay. It was stated that it had even been suggested that a recommendation would conio from tho Treasury that the operations of the board should bo practically suspended. . During tho year 1950 68,309,672 gallons of petrol wore imported into tho Dominion, said the report of the secretary. Tn the year 1931 the imports had dropped to 61,844,702 gallons, which quantity was of a declared value of £1,343,306, equalling 4.8 d a gallon. The present tax and surtax on petrol equalled 8.4 d a gallon. There was, therefore, a declared value of 4.8(1 h gallon tax and a surtax of 8.4 d a gallon. That equalled a tax of 175 per cent, on tho declared value of tho petrol, and a tax of over 200 per cent, on an ad valorem basis. A duty of 200 per cent, ad valorem was an extraordinarily high rate of duty. This was serious enough in itself, but the situation became infinitely worse if examined in tho light of what had happened to tho road funds during the year 1931, and what appeared likely to happen during the present year if last year's legislation was not modified. The petrol tax collected in 1931, excluding surtax £81,607, and an additional 2d a gallon imposed by the Supplementary Budget, which, during the short period it was in force, yielded £112,092, amounted to £1,517,982. This was reduced by rebates and charges by £152,617, leaving the amount actually received by the Main Highways Board at £1,365,365. -lliis sum of £1,365,365 was subjected to various deductions and charges, hitherto carried by the Consolidated Fund, and the amount received by tho Highways Board, was thereby reduced to £749,345. This equalled 2.9 d a gallon when divided by the number of gallons of petrol imported, so that roads fund was now worso off by more than one penny a gallon than it was when the petrol tax was only 4d a gallon.