MOTOR TAXATION.

Otago Witness, Issue 3783, 14 September 1926, Page 71

MOTOR TAXATION.

ALTERATION SUGGESTED. DEPUTATION TO MINISTER. WELLINGTON, September 7. A deputation of master carriers and wholesale and retail motor traders, representative of the Dominion, waited on the Hon. K. S. Williams (Minister of Public Works) to-day and urged the adoption of a petrol tax in lieu of the existing methods of motor taxation. Mr B. L. Hammond, who acted as spokesman, said tho Government had adopted a roading policy involving a proposal to make the motorists pay a fair contribution towards the development of good roads. The interests represented by the deputation were naturally anxious to see good roads constructed and maintained, ami were not in the least averse to contributing a fair quota towards the cost. They were concerned, however, with the method of exacting that quota and the actual amount they were required to pay. Admitting the primary object of tax to be that of securing the necessary revenue to construct and maintain good roads, the principle of application should necessarily be that of requiring all users of the roads in question to pay in true proportion to the use they made of them. All motor vehicles yvere required to be registered, and all owners were required to pay registration fees under tho Motor Vehicles Act, as this method exacted taxation from all owners and the registration fees were based on a sliding scale according to the class of vehicle owned. "We have no fault to find with this method -of taxation/' said Mr Hammond,

"although we do think that the fees should be nominal and sufficient merely to cover the cost of administration only. The deputation desires to protest against the present heavy traffic fees on the grounds that the principle of indirect toxation is a wrong one. Only a section of the community is being unduly penalised, and other sections, equally responsible, are being correspondingly relieved of the taxation which they should rightly be called upon to bear, and the fees levied are, in any case, excessive. The deputation asks the Government to abolish the heavy traffic regulations, in so far as they relate to petrol-driven vehicles, and also to abolish tyre tax, and. in substitution of it, to inaugurate a petrol tax. At present roughly £215,000 per annum is received by way of heavy traffic fees, and a further £186,000 per annum by way of the tyre tax—in all, from those two sources, £400,000. During 1925 importations of motor spirit amounted to 33,125,217 gallons, and on this a tax of 3d per gallon would realise £414,065, less the small sum allowable by way of rebates. This deputation, therefore, asks the Government to legislate with a view to imposing a petrol tax not exceeding 3d per gallon in substitution of the heavy traffic fees and tyre tax.” The deputation was of the opinion that the whole question of motor taxation and transport generally should be inquired into by a special commission appointed for that purpose, with a view to having the matter considered from all points of view. One sore point with the master carriers concerning transport was the manner in which local bodies were classifying the roads. Tho standards adopted in their classification varied in every district. Uniformity was essential, and a commission could do much to remove the dissatisfaction now existing in that connection. The deputation urged the Government to reconsider the whole question of motor taxation, with a view to devising a system correct in principle, equitable in operation, and mutually acceptable to all fair-minded motorola. Mr Hammond said that since it had been decided to make representations on the matter of a petrol tax, a rumour had been circulated to the effect that the Government contemplated increasing the existing heavy traffic fees, and the deputation would like to know whether such a rumour had any foundation in fact. The Minister, in reply, said that, so far as tho question of increasing the existing heavy traffic fees was concerned, he was not aware of any intention on the part of the Government to do so. He had not heard of such a move. The Minister said that hj eonsidered that the whole question of motor taxation required careful and thorough consideration, because there were varied interests, r.nd condition* differed so much. He was net in a position to reply to the deputation, beyond saying that he would consider the representations made, and discuss the matter with his colleagues.