THE PETROL TAX

Otago Daily Times, Issue 21430, 3 September 1931, Page 6

THE PETROL TAX

TO THE EDITOR. Sre—The president of the Auckland Provincial Employers’ Association is reported to have said, " The higher the taxatmn the less work for. the unemployed, and with the possibility of the Government increasing the present high taxes so surely will unemployment increase.” He declared that the,taxation in the Dominion had already reached the stage when it had become a positive burden to primary and secondary industry. In making this statement, Mr Spencer evidently forgot all about the inadequacy of the petrol tax, an increase in which must invariably have a beneficial effect on industry in this country. Even if ‘he petrol tax were doubled, motor vehicles would not contribute sufficient revenue to pay for half the cost of repairing the damage they do to the roads. An increase of Is per gallon in the petrol tax would probably have the following effects: — (1) It would restrict the use of motor vehicles and thereby reduce the tremendous road wastage. (2) It would reduce the flow of, money to America for petrol, etc. The money would, of course, be spent in New Zealand, probably on New Zealand-nfade goods. (3) Horses would be used more extensively, thus restoring a market for oats and chaff, (4) The general taxpayer would be relieved of the obligation of making up the £6,000,000 deficit, in the road account, this sum representing the difference between the revenue from petrol tax, tyre tax, licenses, and fees (£1,420,036) and the country’s annual road bill of between £7,000,000 and £8,000,000. It is ridiculous to expect those who use the railways to have to contribute the £6,000,000 necessary to meet the cost of repairing the damage done to the roads by motors, when motorists themselves contribute only £1,420,036. It is difficult to understand why the motor, transport business has been allowed to ride on the backs of the community so long. If it cannot support itself, then it should-be required to* give way to the railways, which are able to pa.v working expenses, plus 1.16 per cent, interest on capital invested. An increase in the petrol tax of about Is per gallon is not only desirable, but an absolute necessity, if the road transport business is to be self-supporting.— !l am, etc., J. A. F. September 2.