LEVY ON PETROL

Otago Daily Times, Issue 26437, 16 April 1947, Page 6

LEVY ON PETROL

WAR PURPOSES TAX' AUTOMOBILE ASSOCIATION CRITICISM An opinion was expressed by the executive of the Automobile Association (Otago) last night that although the recently-imposed increase in the price of petrol of Id a gallon could probably be justified, the continuance of the 4d war tax on petrol was unjust. The president, Mr G. W. Ferens. said that the recent increase was not a surprise. It was only consistent with the rising prices of other commodities, and no doubt the Government had made careful inquiry into the landed costs of petrol- before imposing it. The effect of such an increase fell to a great extent on commercial users of petrol, but it also affected the motorist who used his few gallons a week for pleasure. “What this association and the motor unions object to is the continuance of the 4d war tax on petrol. All efforts so far to have it remitted have been unsuccessful. Four months ago the motor unions made representations to the Minister, and have been denied the courtesy of a reply from the Government. I consider that the very fact that the Government will not meet the unions on the matter shows that it realises the weakness of its case and the injustice of retaining on all motorists a tax of 4d a gallon which was imposed for war purposes only.” ' It was granted that costs were rising and that an increase in the price might be equitable, but on the, other hand, the Government itself should be fair and remove a tax which it could no longer justify. If this course had been followed, petrol would be 3d a gallon cheaper. It&was hardly necessary to repeat that taxation in South Africa was now 8d a gallon, in Australia IOJd a gallon, and in New Zealand t 14.7d a gallon. The other point that the unions were pressing was that the 6d a gallon tax imposed “for main highways purposes and all other taxes such as tyre tax, motor registration, etc., which formed part of the revenue of tfie Main Highways Board, be preserved intact for expenditure on State and main highways; Mr Ferens added. He hoped that the members of the association would realise that they were still being unjustly taxed by the Government.

“ Hear, hear! ” members of the executive said in chorus, and the chairman’s explanation of the present position was unanimously endorsed.