THE NEW TAX ON PETROL

Taranaki Daily News, 10 February 1933, Page 7

THE NEW TAX ON PETROL

PROTEST FROM MOTORISTS. DEPUTATION TO MINISTER. By Telegraph.—Press Association. Wellington; Last Night A deputation representing motoring interests waited on the Rt. Hon. J. G. Coates, Minister of Finance, to express opposition to the. increased, levy on .petMr. A. E. Ansell, M.P., introduced the deputation, which included Mr. W. A. O’Callaghan, president of the North Island Motor Union, Mr. F. W, Johnston, president of the South. Island Motor Union, and representatives of the Wellington, Auckland, Hawke’s Bay, South Taranaki and Wanganui Automobile Associations. Mr. H. Wynyard, motorists’ representative on the Highways Board, was also present. Mr. W. G. Walkley, secretary of the North Island Motor Union, said tiie total taxation on petrol with exchange amounted to 12.45 d. per gallon. The increase in the tax between the years 1930 and 1931 was 600 -per cent., and this year the increase would total 820 per cent. Following the 2d. increase in the tax in 1930 the sales of petrol dropped by 6,000,000 gallons; with another 2d. addition in 1931 there was another decrease of 5,000,000 gallons. .This revealed that the increased taxation was unlikely to yield the additional revenue. He suggested that £1,000,000 be taken from the unemployment fund to provide work on the highways which were seriously deteriorating, and also suggested a tax on local body trading as a means of increasing the revenue. Mr. Coates said he recognised “the necessity of maintaining the roads, and he was also aware of the danger of the diminishing returns to taxation. By investigation it was perhaps possible to find some means of making the burden more equitable. He would keep a close watch upon the consumption of petrol in order to observe the effect of taxation.