FRESH TAXATION

Gisborne Herald, Volume LXVI, Issue 20012, 10 August 1939, Page 5

FRESH TAXATION

HIGHER LEVY ON PETROL HOPES OF REVISION ,' COST TO, CONSUMER PASSING ON OF BURDEN (Parliamentary Reporter.) . WELLINGTON, this day. One portion of the Budget which the Opposition might have made more use of was the section -relating to fresh taxation; stated Mr. F. L. Frost (L'alb., New Plymouth) in the House yesterday. " The country had accepted the petrol tax very quietly, but he urged that it should be reviewed 'at the earliest date,: There was easy; justification for it, as for most faxes. Petrol had been higher in price in days gone toy. Improved machines gave greater economy to 'its use, but the curse of all taxes was that they could be passed on so easily.

. ■ He-.had, noticed .this general- tendency in ■reports' Regarding the petrol increase, thougih the transport licensing authorities were appealing to the road services to share some of the tax. This question was to be considered by these interests at a conference in Wellington next week.

Price-Fixing: Tribunals

He would direct the attention of the Minister in charge of the price-fixing tribunal to the matter, so that he could watch the position with extreme care and see that the people were protected against the complete passing on of this tax.

'Mr T L. Mad Donald (Nat., Mataura) How much can the fanner pass on?

Mr. Frost: iHe can pass on some of his share, but possibly he will be bit as much as the town consumer, and in the end the consumer pays the whole thing. Mr. Frost suggested that, on the basis of petrol consumption figures, the yield was going to be double the estimate. If this occurred, he appealed to the Government to revise the tax at the earliest possible moment.

The reduction in the income tax exemption would, he considered, inflict some hardship on certain classes of people, such as young men studying at universities preparing for professions, many of ' whom were already paying fairly extensively to the social security tax, so that they would find the new burden fairly severe. ■ However, he concluded, the country had to provide for defence. It could only accept this as part of the burden.