FARMERS USING REBATED PETROL.

Star (Christchurch), Issue 19107, 27 June 1930, Page 5

FARMERS USING REBATED PETROL.

BUSINESSMAN SAYS THEY DODGE TAXATION. The allegation that some farmers were abusing the rebate system in connection with the petrol tax was made by a city business man today. This man travels extensively in country districts and he declares that he has met fanners who boast of the ease in which they obtain petrol for their cars without paying tax for it.

The legislation providing for the levying of a petrol tax permits of a rebate, equal to the amount of the tax, being claimed by the users of stationary engines, such as those tised for driving milking and shearing machines. Motor tractors used exclusively on farms are also included in this clause, which allows for a rebate to be claimed on all petrol-using engines which are not used on the roads. The statement was made to-day that farmers are extensively using the petrol on which they claim a rebate, in their care. It was pointed out by the speaker that detection was very difficult, as it was an easy matter for a farmer to declare that he had run his tractor or his milking machine for a much longer period than he actually had, with the result that he could claim that all the petrol he obtained a rebate for was actually used in these machines. A suggested remedy was the colouring of petrol used for exempted engines. The man who was giving the information said that he had been in the petrol business and he knew that it was perfectly easy to colour petrol without doing any harm to the petrol or the engines. Then, if an inspector found petrol of whatever colour was decided upon in the tank of a farmer’s car, that farmer should be heavily fined. Naturally, added this man, the farmers were keen on an increase in the petrol tax, for the very good reason that they would not have to pay it themselves and so they would reap the benefits from what the commercial and private users would have to pay. He added that the provision of good roads increased the value of the farms which adjoined those roads, but the farmers were not prepared to pay for those increases in value. The inauguration of a system of using coloured petrol for stationary engines and tractors would probably mean an additional staff of inspectors, he added, but he was sure that the increased revenue which would be obtained from the petrol tax would more than pay for the services of these men.