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Hokitika Guardian, 17 November 1921, Page 2

the “surprise packets" of tno , tf rilF is o duty ol IJd per gallon on 7 kerosene arid petrol. [ n country ■ 1 istriets particularly settlements icinotfrom towns the imposition of this tax i-' regarded a s a hardship. "I.et tli •• • ' I)'* light.* says the Scripture. "Let the poor man's be taxed." sn\s the tarilf. Such is ino comment on tile taxing of kerosene, which gives light for families away out in the baekbloells. Light (lioin eMtric current or ansi for people who lire comfo.tahly in the cities is not taxed, hut a duty on kerosene taxes the light , f struggling settlers, whose lives hue little or no luxury. Complaints against the taxation ol petrol and kerosene say that the (Jmeriinient no doubt incidentally overlooked the (lovernmenl's main maxim ol ‘•settlement, more >*/UlomeuL. and still more settlement." er I "prodmti«n, more production, and st.ll more production." It is well known that petrol aim kerosene provide power lor much machinery used oil all kinds of farms throughout the Dominion. The taxing of power for production s condemned as a cheek to production. In addition to the extra cost that would be put on farmcis by the taxing <.f power lor pastoral and agricultural machinery, there would he the additi mid cost of motor transport of goods i.n which settlors are dependent, [t , s mentioned that this taxation .a.in it fail to he a hardship to n great number of small settlers, including th iusamls of returned soldiers. These settlers are suilering from a severe fall in the price, s of produce, hut their working costs have not dropped appreciably from the peaks of the war and post-war years. In the House of Representatives, the I'rime Minister emphasised the need of asking as much as possible the burden of taxation for the loan on the land. He indicated that 'the policy of the (iovcrnnic.nl would he to tax luxuries, not necessaries. It is contended, therefore, that , the taxation of petrol and kerosene. > which are essentials for settlers is not consistent with the (lovernnient's puli- | e.v. ‘"Taxation is nominally in money.” remarked a representative of the farmers, ‘‘hut all taxation is necessarily taken from production; it is a cut from the country’s real wealth. If the | (lovernmeiit requires more of this real J wealth for the purposs of (lovernment. j the toll must come from an increase of production. Aliy check on production is a certain drying op of the sources of I

wealth from which the Government 1 draws its revenue. A sound system of taxation must encourage, not discourage, production; otherwise the taxation scheme merely defeats itself. Men have to be encouraged as much as possible but surely it must be admitted that the taxation of power and light is

Hot an encouragement. With the drop in the prices of produce, the volume ot production must lie increased to assure a return of New Zealand’s prosperity. Any tax which hinders such production delays the return of hotter times for all classes of the community.”