MOTOR TAXATION.

Waikato Times, Volume 117, Issue 19545, 6 April 1935, Page 10

MOTOR TAXATION.

REPLY TO CRITICISM. MR COATES AND UNION. (By Telegraph.—press Association.) WELLINGTON, Friday. In a further reply to criticism made bv the North 'lsland Motor Union upon his recent statement regarding motor taxation, the Minister of Transport, (Mr Coates, said there was an allegation that the additional taxation would be removed as soon as tax reductions could be made, the union apparently contending that the assurance in question implied that the first .reduction in taxation would be in respect to motor taxation. Such an interpretation was certainly not in his mind at the time, nor did it appear that motorists had established a claim to -priority over other taxpayers. Moreover, •it did not follow,',Mr Coates continued, that if relief was given by way of general taxation it would not benefit motorists. He also claimed that the conclusion arrived at in his report, that the major portion of transport was used for business purposes, was based on correct figures, and not . upon transposed ones. There were also the Customs figures for February last. The total items amounted to £695,618, not £795,618, as in the Motor Union’s statement. As to the final contention that 'Cara had been taken to avoid giving the union credit for conservative estimates, where such had to be made, he assured the union that there was no such intention. His intention was simply to have the position stated in its true perspective, more particularly in view of the union’s extraordinary assertion that the Government collected from motor vehicle owners during 1934 the colossal sum of £5,336,537. Analysis of those funds showed that they included third party Insurance premiums amounting to £221,734 for the year ended May 31, 1934, which were Included in the registration fees- Although collected by the Government, these were paid to the insurance companies for the protection of motorists, and could not therefore be considered as taxation.