PETROL TAXATION

Taranaki Daily News, 19 July 1933, Page 4

PETROL TAXATION

INCREASED YIELD IN WELLINGTON. FIRST QUARTER'S GAIN. Since the Wellington City Council prepared its estimates of receipts and expenditure for the current year, the position in regard to the petrol tax has changed, and the indications, are that the actual revenue to be derived from this source may be about 25 per centmore than the amount estimated, which is £14,400. ' At the beginning of the financial year, additional imposts levied by the Government forced the price of first grade petrol up to 2s 3d per gallon, but so emphatic were the protests in the House of Representatives from motoring and other organisations throughout the country, that a reduction in the tax was made, and the oil companies also decided to carry part of the taxation. The res yt t has been that prices dropped to 2s Id, then to 2s and Is lid, and finally to Is 10d for first grade, which is the price today. A big decrease in consumption followed immediately on the jump in prices, as many owners locked their cars lip in the garages, and even some heavy traffic vehicles were taken off the road. This danger signal was not allowed to go unheeded, for it was realised that instead of producing more revenue—which was the object of the increase in taxation it had had the opposite effect. That the reductions in petrol prices have led to an increase in demand. is shown by figures submitted to the City Council last week. The city’s estimated total revenue from petrol taxation for the year is £14,400, but the receipts for the first quarter, April 1 to June 30, were £4336, As this period included

much inclement weather, and the petrol consumption will naturally increase as the spring and summer months approach, it is believed that the estimated figures may be exceeded by as much as 25 per cent.

The feeling that better times are hear is indicated by the increase in the number of motor vehicles of all kinds on the roads. Cars which have been laid aside have been re-registered, and in the first month of the heavy traffic year, which

commences on June 1, the receipts showed an increase on the corresponding period of last year. The receipts; for June were £7902, against £7746 for June, 1932. The estimated total for the year is £12,471.