DUTY ON PETROL

Taranaki Daily News, 16 February 1933, Page 5

DUTY ON PETROL

REBATE OF SIXPENCE ONLY. As the latest tax on petrol will be used purely for Budget purposes and will not go into the Main Highways Fund, no' rebate in respect of the additional amount will be payable to launch and aeroplane owners and operators of stationary engines. This is the interpretation placed on the legislation by post office officials, although no official instructions have been received. When a duty was first imposed on motor spirit it was for the clearly-defin-ed purpose of building up a fund for expenditure on main highways. The duty was collected in bulk, but owners of engines other than those in road vehicles were able to claim a rebate at the post office. This practice continued in force while the duty was under 6d. and at 6d., the whole of the duty paid being refunded.

However, in October, 1931, the duty was increased by 2d. a gallon to Bd. This additional tax was a direct contribution to the Consolidated Fund and legislation macle it clear that every pet-rol-user was liable for the additional amount. Section 10 of the Customs Amendment Act, 1931, stated that: “All moneys received. . . as Customs duties in respect of motor spirits, in excess of the amount which would have been received if this Act had • not been passed, shall be deemed for all purposes to be ordinary Customs revenue, and shall be dealt with accordingly, and nothing in the Motor Spirits Taxation Act, 1927, shall apply in respect thereto.” It is expected that similar provision will be made in respect of the latest increase in the duty and that it will be incorporated in the Customs Bill to be introduced in the House shortly. Thus motorists will pay a duty of lid., other petrol users being liable for sd. only.