BRITISH PETROL TAX

Hokitika Guardian, 24 April 1928, Page 2

BRITISH PETROL TAX

TAX ON HORSEPOWER TO REMAIN. (United Press Association.—By Electric Telegraph.—Copyright.) LONDON. April 21. Cabinet finally approved the Budget a feature of which is rating reform. aiming to assist agriculture and industry, the former by freeing agricultural land from rates and the latter by tile allocation in •’black spots’’ from rating liabilities. It will be a highly controversial scheme rearranging the functions of local Government.

But the bombshell, says the “Daily Express,’’ is the decision to tax petrol in addition to the present high horsepower fax. It is understood that Cabinet succeeded ill (becking the project only as regards tile amount. Tbe secret as to tbe exact figure lias been well kept. AVoll informed circles believe that a compromise lias been reached at twopence a gallon.

Over a million motorists are preparing to declare war on Mr Churchill in th;> event of fulfilment' of what is described as his amazing decision to add a petrol -tax to the present tax of tl per horsepower. For the past five years motorists’ organisations have been agitating for tbe removal of tbe horsepower tax and tbe substitution of a petrol tax. The culminating point cuint when a petition with over a

million signatures in favour of this step "‘as presented to the Chaucolloi of the Exchequer. The elusive Mr Churchill gave no hope that reform would be granted. Now. oil the Budget eve. it is learned that the Chancellor proposes to add a tax of anything tin to fotira gallon on petrol, without

removing the horsepower tax. Motorists are astonished, and even in the lace of a definite announcement sav it is too ridiculous to believe. The evening papers to-day feat me the proposal, which is regarded as the bombshell of the Budget. In the past three years all Budgets,have contained a series of new taxes, raids on the motorists’ road fund running into many millions of pounds.