THE PETROL TAX.

Timaru Herald, Volume CXXV, Issue 18627, 24 July 1930, Page 8

THE PETROL TAX.

EFFECT UPON MOTOR TRANSPORT. i BURDEN ON THE PUBLIC. I The increased petrol t\x which comes into operation to-day formed the subject of some comment yesterday by a number of business men engaged in the motor transport service and the petrol business. The Public Pay. The consensus of opinion was that the tax will be passed on, and that as a consequence the public or sections of the public will have to pay. One business man advanced the view that it enabled the Government to levy a toll from industry and commerce directly ,but indirectly taxed the rank ~nd file of the public. He said that for every additional amount that is levied from the general public, so the purchasing power of their money decreased. Other opinions confirmed this view, and one man ventured the statement that the eternal juggling witn Customs tariffs for the purpose of financing a country, especially in times of depressed markets, was a sign of inability in a Government responsible for this method. “This new tax means an enormous amount of money,” said a petrol dealer. “It can’t affect us, because it has just got to be passed on. We could not be expected to bear all the burden. It has to be borne by all users of juice.” Increase in Fares. “We are the biggest users of petrol in South Canterbury,” said Mr H. Lister, of Lister’s Motors, yesterday, when asked for his views upon the new petrol lux. “To give you some idea of the effect of the new tariff, jt will make a difference of about £7OO a year to us. that is in the consumption of ! petrol alone. We use about 37.000 gallons in covering 338.000 miles we travel with our fleet in a year, and pay to the Government taxation in connection with the Highways scheme £1266. a year. Then our tyre tax amounts to £l5O, heavy traffic licenses £240. registration fees £44, other licenses £22, making a total of £1720 a year ,which practically should all go for road maintenance.” Coming to the question of the effect of the taxatrion proposals, Mr Lister said: “There is no doubt that we may sooner or later have to raise our fares on some of our services which at the present time are running at very cheap rates. Of course, knowing that economic conditions are bad, we have no desire to do this, but when the Government imposes the additional burden now contained in the tariff proposals, we have no option but to do something of the kind. It means either raising fares in certain directions or else losing money.” Mr Lister expressed the opinion that the additional petrol tax was designed to protect the railways, the assumption being that buses are responsible for failure of the railway sen ice to pav. “As a matter of fact,” claimed Mr Lister, “it is not the buses which have reduced the earnings of the railways. It is the large number of privatelyowned cars which carry the owners and their families and often their friends, which are reducing the passenger traffic on l_ie railways. It is obvious that motor traction has come to stay, and it does not seem to me that by increasing the petrol tax the Government will be able to force people to patronise the railways. It is an unfair thing to saddle people who are already overburdened with taxation with an extra burden. It means that a portion of it will have to be borne by the members of the public. Or course, if all this money which it is proposed to raise by the increased petrol tax, is placed on the roads, it will mean that we will have better roads, and with better roads the cost of running, in the way of lower petrol consumption and longer service from tyres, will go a certain distance towards compensating for the extra taxation. It will not, however, comDensate for the whole of it. The travelling public, through no wish of the motor bus proprietors, will be called upon to bear a portion of the extra tax. Discontent and Disapproval. “I don’t think the petrol tax will greatly interfere with private motoring,” said Mr C. W. Wood, “after the first shock of it has passed off. People have been more or less prepared for an increase, and one hears the usual stock flow of words of discontent and disapproval which follow increased prices, no matter what commodity is affected. During the war periods, petrol was higher than it is to-day. Many tried to use kerosene as a substitue. but came back to the real thing and paid the ruling price for it, eventually forgetting that there had been an increase. The commercial community and continuous users will certainly notice an increase in their running costs, but they have no alternative but to pay and pass it on where they can. The first essential in all social activities. commercial and industrial, is transport; power coming next. No one can imagine any human activity without transport. Motor transport is now so firmly established that it cannot be done without, nor is there any other power to displace it. People will pay until other factors prevent them. They will go on as usual in the same old way until some new circumstance grips them.”