BRITISH BUDGET

Wanganui Chronicle, Volume LXXXIII, Issue 20128, 23 April 1928, Page 7

BRITISH BUDGET

RATING REFORM Mr Churchill has Bombshell for Motorists AGRICULTURAL AND INDUSTRIAL BELIEF [ By Telegraph—Per Press Assn.—Copyright ] Received April 22, 10 p.m. (A. & N.Z.) LONDON, April , '.O. Cabinet has finally approved of the Budget, a feature of which is the rating reform aiming to assist agriculture and industry, the former by freeing agricultural land from rates, and the latter by allocation of large sums to relieve industries’ black spots from rating liabilities.

It will be a highly controversial scheme rearranging the functions of local government, but a bombshell, says the Daily Express, is the decision to tax petrol in addition to the present high horse-power tax. It is understood that Cabinet succeeded in checking the project only as regards to tlio amount. The secret as to the exact figure has been well kept, but well in formed circles belicv that a compromis was reached at twopence a gallon. Over a million motorists are preparing to declare war on Mr Churchill in the event of the fulfilment of what is de jC’il ed as an amazing decision to add a petrol tax to the present tax u± £1 per horse-power. For the past live years motorists’ organisations have been agitating for the removal of the horse-power tax and the substitution of a petrol tax and a culminating point came when a petition with over a million signatures in favour of this step was presented to the Chancellor. The elusive Mr Churchill gave no hope that the reform would be granted, and now on the Budget eve it is learned that he proposes to add a tax of anything up to tourpenee a gallon on petrol without removing the horse-power tax. Motorists are astonished, and even in the face of a dcfinP announcement say it is too ridiculous to believe.

The evening papers to-day feature the proposal which is regarded as the bombshell of the Budget.

In the past three years all the Budgets have contained a series of new taxes, raids on the motorists’ road fund running away with many millions sterling.