TAX ON PETROL

Poverty Bay Herald, Volume LIII, Issue 16492, 9 November 1927, Page 7

TAX ON PETROL

THE BILL INTROPUCED METHOD OF EXEMPTIONS £SO FINE FOR FALSE CLAIM (Parliamentary Reporter.) WELLINGTON, this day. The Motor Spirits Taxation Rill, which provides for a tax of 4d a gallon on petrol, was introduced by Governor’s Message just before the House rose at 11.35 o’clock last night. The tax is not to apply in Cook Islands.

The Bill provides that in respect of motor spirits purchased by a consumer after February 1, 1928, and used for purposes other than fuel for a licensed motor vehicle, the purchaser shall he entitled to a refund on an application on a prescribed form to the registrar, of motor vehicles. Application must he made within 90 days after the date of consumption. Every application must he accompanied by such declarations or other documentary evidence as the registrar of motor vehicles may require .to prove that all the motor spirit in respect of whicli the application is made was used otherwise than as fuel for a licensed vehicle. ,

IA penalty of £SO, or. three months’ imprisonment, is provided in tire event of a false claim being made. Administration expenses are to be deducted from the taxes collected, and 92 per cent, of the residue is to he paid into the revenue fund of the main highways account. The balance is to he apportioned among those borough councils, in whose districts there is a population of 6000 or upwards.

EXPENDITURE IN BOROUGHS

The money paid to borough councils shall be paid into the district fund account, and he available only for expenditure on the construction, maintenance, and repair of streets forming a continuation of main highway within tlie meaning of tlie Highways Act, 1922, or towards the payment of interest or sinking fund on loans for the construction or reconstruction of such streets. If the sums paid to any borough council are more than sufficient /for the purposes mentioned the money may be used for the construction, maintenance, or repair of any other streets within the borough, or for the payment of interest and sinking funds. The prior approval of the Main Highways Board must, however, be obtained.

The Bill provides for the making of regulations by order-in-Coundl. An important clause empowers the Minister of Customs to exempt from duty any motor spirit if he is satisfied that it is intended for manufacturing or scientific purposes, or for such similar purposes as he may determine. Such spirit must be treated to render it unfit for fuel for motor vehicles.