PETROL TAX AROUSES IRE OF MOTORISTS.

Star (Christchurch), Issue 18448, 26 April 1928, Page 4

PETROL TAX AROUSES IRE OF MOTORISTS.

BUDGET PROVISION HOTLY CRITICISED.

(United Press Assn. —By Electric Telegraph.—Copyright.) (Received April 26. 8.55 am.) LONDON, April 24. Police had to clear a way from Downing Street to enable Mr Winston Churchill to pass through the crowd to the House of Commons. He was accompanied by his daughter Diana. He walked along Whitehall amid cries of “ Good old W inston. A passing bus driver called: hat about beer and baccy? and the 1 hancellot, wreathed in smiles, waved a frirnrliv hand. Mr Churchill's surprises were the Petrol Tax and children’s allowances oif Income Tax. . The Petrol Tax is ceil.only vigorously opposed by motorists. Mr Reece, chairman of the motor section of the Liverpool Chamber of Commerce, describes the tax as wicked and * iniquitous, and says that it will do untold harm and keep a large number ot cars off the road.

Captain Malcolm Campbell, the motor racer, regards it as unfair to the motorist, who already is heavily taxed. The registration tax, based on the car's horse-power, is quite sufficient. Taxi-owners and drivers say that it is simply ruinous. . The Commercial Motor Users’ Association estimates .that the average goods traffic vehicle will pay £4O to £SO annually extra for petrol. This is simply staggering, and will cost the General Omnibus Company more than £300,000 extra yearly. It is expected that fares will be increased. Sir Robert Horne, ex-Chancellor, says that he is glad that Mr Churchill has taken the opportunity to bring out a comprehensive scheme for relieving staple industries. Fie regrets that the necessity for taxing petrol for this purpose has prevented momentarily the cancellation of the tax on the horsepower of motor-cars, but the Chancellor says that he has not closed the door upon an alteration of this important duty.

Sir Robert Horne refers to rating reform. which he says has been favoured by all sections of the House for a long time, but money has been wanting. The effect of reform will be felt after October, 1929. All property used for production by means of manual labour will be relieved of three-quarters of local rates and agricultural land, already relieved of three-quarters, will be relieved entirely, local authorities being compensated by grants from the Exchequer. The offices of private residents will not benefit in any way. The railways, which benefit to the extent of £4,500.000 annually, have agreed to pass on their savings in the form of freight reductions.—Australian Press Association.