PETROL TAXATION, ETC.

Waikato Times, Volume 118, Issue 19648, 7 August 1935, Page 9

PETROL TAXATION, ETC.

(To the Editor.) Sir, —In the issue of the Waikato Times of August 3 there are letters from three correspondents of Ohaupo, who take exception to some of the remarks made by myself when speaking at Ngahinapouri on July 23. The first 1 will deal with is a letter over tho signature “Now Over-taxed." He says tho remarks of Mr D. S. Roid, M.P., merit recognition. "He did not consider petrol taxation oppressive at the present time.” Sir, I stated that in my opinion we as users of petrol were not paying the full tax. I believed tho oil companies were bearing a share of it. The price of petrol at the present time is as low, if not lower, than prior to the tax. Whenever the tax was increased the price of petrol remained the same, or, if increased, only remained so for a short period.. Petrol to-day ’ can be purchased at Is lOd and Is lid per gallon. The taxation is lOd per gallon. Had there been no tax, would anyone suggest the price would be- down to Is? 1 do not think so. 'I believe the oil companies felt It would be to their interests to carry a portion of the tax rather than curtail the consumption. Also, owing to the wonderful improvement to our roads, owing to petrol tax, tho saving of wear on tyres and car, and a reduced amount of petrol required, to say nothing of the reduction in county rates, have been of immense benefit to the travelling public. The farmers were considered by the Government when levying the tax, as all petrol and oil for use in engines and tractors on Hie farm are exempt. The above, Sir, are my reasons for behoving the tax is not oppressive. The second letter is signed “One Who Does Pay.” lie refers! io my statement that small farmers do not pay income tax and do not pay label tax, and says that on perusal of official documents he finds lie has been paying land i*tx for many years; that through the abolition of rebaLe for prompt payment tho "amount, like Topsy, just growed." Evidently he is one of Hie fortunate small farmers who has no mortgage—or at least a very small one —on his farm. Land lax is only assessed on the unimproved value. If the mortgage is equal to this value the farmer is exempt. There are very few small farmers not mortgaged to this extent, and many much above it. He would also make mo appear to have said the smull farmer only pays unemployment tax. Tills statement is not correct. Would lie kindly give his payments for land tax for tlie past few years to prove that it iias grown? I say definitely the land tax lias not increased. With reference io the third correspondent, "Raglan Elector.” headed "National Debt," I made it quite clear when replying to his first letter that the Government had. not increased the national debt during the depression. 1 regret If this is causing him apprehension. As the rest of his letter lias no connection with remarks made at tho Ngahinapouri, mceling i am not concerned with them, —I am, etc., STEWART REID. Ngahinapouri, August 5, 1935,