PETROL TAX

Wairarapa Age, 10 November 1927, Page 3

PETROL TAX

EXEMPTIONS & ALLOCATION. BILL BROUGHT DOWN. POSITION OF BOROUGHS. The Motor Spirits Taxation Bill, giving effect to the rosohiiions imposing a petrol duty of 4d. per gallon, empowers the Minister of Customs to exempt any motor spirit from the duty if he is satisfied that it is intended to be used for manufacturing or scientific purposes, or for similar purposes determined by him, and that it has been so treated as to be rendered unfit for use as fuel for motor vehicles. The duties will not be applicable to the Cook Islands, and there is a saving clause with reference to agreements with Australia and South Africa. REFUNDS OF DUTY.

Clause 7 deals with refunds of Customs duty in respect of spirit used otherwise than for motor vehicles. In respect of motor spirits purchased by the consumer after February 1, 1928, and used for any purpose other than as fuel for a motor vehicle in respect of which an annual license fee is payable under the Motor Vehicles Act, 1924, the person using such spirits shall on application in the prescribed form to the Registrar of Motor Vehicles, be entitled to a refund of an amount computed at the rate of 4d for every gallon of motor spirits so used. In addition to these refunds a refund of duty shall be allowed in respect of all motor spirits purchased by the consumer before February 1, 1928, and used otherwise than as fuel for a motor vehicle if the applicant proves to the satisfaction of the Registrar of Motor Vehicles that the duty imposed by the Act or by the resolutions confirmed by the Act has been paid in respect of these motor spirits. No refund shall be allowed unless the application for it is made within ninety days after the date of consumption of the motor spirits in respect of which the claim is made. Every application shall be supported by such declarations or other documentary evidence as the Registrar of Motor Vehicles may require to prove that all motor spirit in respect of which the application is made was used otherwise than as motor fuel for a motor vehicle in respect of which an annual license fee- was payable. A fine of £5O or a sentence of three months’ imprisonment may be imposed on any person making a claim which is false in any material particular. APPORTIONING THE MONEY. After deduction of administration expenses, 92 per cent, of the revenue derived from the tax is to be paid into the Revenue Fund of the Main Highways Account, and the balance will be apportioned among those borough councils in whose districts there is a population of 6000 or upwards, in amounts bearing to each other approximately the same proportions as exist for the time being between the populations of the several boroughs. The Minister of Public Works will determine the amount to be at any time paid to any borough council, and his decision will be final. Moneys paid to a borough council will be available only towards defraying the cost of the construction, reconstruction, maintenance, or repair of any street or streets forming a continuation of a main highway within the meaning of the Main Highways Act, 1922, or towards the payment of interest, or of interest and sinking fund, payable in respect of moneys borrowed for the construction or reconstruction of any street or streets forming a continuation of a main highway. If the moneys paid to borough councils are more than sufficient for the purposes specified, the council may, with the prior approval of the Main Highways Board, apply any surplus funds towards the cost of the construction reconstruction, maintenance or repair of any other street or streets within the borough, or towards the payment of interest, or of interest and 1 sinking fund, in respect oF any loans raised by the borough council for street improvement works.