THE TAX ON PETROL.

Taranaki Daily News, 10 February 1933, Page 6

THE TAX ON PETROL.

Protests were made, recently that by the diversion of revenue obtained by a tax* upon petrol from the Highways to the Consolidated fund capital expenditure upon roads may be wasted for lack of suitable maintenance. There is little comfort for those who are concerned over road deterioration in the latest proposals in regard to the petrol tax. The duty on petrol will be lid per gallon in future arid of this about 8d will be retained for general Budget purposes and 3d per gallon- will be available for highway construction and maintenance. Importations of petrol last year amounted to 58,000,000 gallons and a tax of 3d on this would have yielded £725,000. But as the Minister of Finance only anticipates raising £500,000 from the additional 3d now imposed it seems obvious that a considerable reduction in importations is expected. If the Minister’s estimate is sound the Highways Fund can only rely upon a coritribution of £500,000 from the petrol tax and- it is clear that a considerable curtailment of the roading policy will be inevitable. Highways authorities have at least the satisfaction of knowing the Government’s proposals before the commencement of the financial year and this will enable their policy to be shaped in accordance with the funds available. It seems fairly evident that thorough maintenance ra’ther than any new work must constitute next year’s roading programme.