TYRE’ TAX

Southland Times, Issue 18974, 22 June 1923, Page 5

TYRE’ TAX

THE EXCHANGE DIFFICULTIES NEW SCHEME PROPOSED (Special to the Times.) CHRISTCHURCH, June 21. In assessing the tyre tax over and above Customs duty a difficulty is experienced in providing for the changing exchange rates, with the result that certain foreign tryes have obtained a benefit. Mr J. S. Hawkes, organiser of the Canterbury Automobile Association and president of the South Island Motor Union has evolved a scheme which he considers will get over this difficulty. His proposition is explained in the following circular which he is sending out to the organisations affiliated with South Island Motor Union: The present method of tyre taxation on a duty basis, does not appear to be satisfactory as tyres are continually fluctuating in price, the exchange more particularly. That of France and Italy is such that the revenue from duty is only about one-third of what it should be. There is always going to be difficulty in this respect under the present system. The suggestion I have made is that the method of arriving at the duty should be by a flat tax on each tyre according to size, irrespective of value, quality or country of origin. Basing this on an importation of 200,000 tyres per annum, say at an average of 25/- per tyre, it would bring in £250,000, the sum the Minister requires for his highways revenue. These figures would be a low estimate and they would be probably nearer £300,000. Attached is the suggested tax per tyre, 2 inch 5/-; 3j inch 15/-; 4 inch £1; inch £1 7/6; 5 inch £1 17/6; 6 inch £3 5/-; 7 inch £4 10/-; 8 inch £6 10/-; 10 inch £8; 12 inch £lO. Mr Hawkes has communicated with the Government on the matter and a reply is awaited with interest.