BRITAIN’S NEW TAXES.

Timaru Herald, Volume CXXV, Issue 17946, 3 May 1928, Page 9

BRITAIN’S NEW TAXES.

Oil Companies Move. AN INTERESTING DEVELOPMENT. (United Press Association—By Electric Telegraph—Copyright.) (Received May 2, 7.30 p.m.) LONDON, May 2. The oil companies announce that kerosene was reduced by 4d per gallon this morning. Thus the tax on paraffin, which is expected to yield nearly £3,000,000 per annum, lasted barely a week, in which between £60,000 and £70,000* was paid. Mr Churchill admitted that some minor confusion may arise, remarking that it is in consequence of the will of Parliament being made effective immediately. He added that he had been assured that adjustments were not at present a serious difficulty. Mr Churchill did not state how the loss would be made up, but he definitely ruled out the withdrawal of the sugar concession or an increase in the petrol tax. It remains to be seen also what formula has been devised, capable of continuing what Mr Curchill called the new chemical frontier between petroleum and paraffin, which was left ttntaXed. A few years ago, paraffin was largely used as a substitute for the purpose of evasion, especially by heavy vehicles, using only ft little petrol to start heavy oil going. ' The “Daily Chronicle’ ’says the simplicity, which is one of the charms of Mr Churchill’s original duty, on light Oils, disappears, and large possibilities of leakage have been opened to evade the duty by mixing kerosene and petrol for commercial vehicles, or inventing road engines to run on a large proportion of untaxed fuel. Invention moves quickly nowadays, when the spur is given. KEROSENE TAX OPPOSED. “PRESS HEAVILY ON WORKING CLASS.” (United Press Association —By Electrlo Telegraph—Ofmvright.) IXSNDON, May 1. Many Unionists who have returned from spending the week-end in their constituencies, are" convinced that-the kerosene tax will press heavily on the working classes in the country districts owing to the great increase in oil stoves for heating and cooking. Generally, the opinion is that the tax cannot he supported, hut if dropped Mr Churchill’s pool will be depleted to the extent of £2.500,000. It is suggested that Mr Churchill may withdraw the sugar reduction in order to recover the money which tfte kerosene concession will cost.