DEARER CARS

Hokitika Guardian, 27 August 1930, Page 8

DEARER CARS

NEW CANADIAN DUTY

DEPUTATION ■ • TO-DAY-.

AMERICAN AGENTS PLEASED

WELLINGTON, August, 23. Drastic price incresises.in respect to tiie majority : of. the■ cars oil the market in New Zealand ; are inevitable if the new Canadian tariff rate announced yesterday is retained. The: . newschedule will more .than double the duty . payable, on Canadian cars and if passed-on to-,the retail price in lull.

this will involve-- increases of - from ' £25 to .£SO in the*cost of cars in the so-called “popular”, price class. Only three makes of. cars which have been paying the . full tariff Tor American products have been selling in large numbers in New Zealand, and . the groat majority of those prominent in: the sales-totals have enjoyed the same rate- applied to English makes. ! So many familiar makes will be affected that the result will be the most sweeping jump in car prices experienced for many years.

SOME . FIGURES

A - Cauad.in.ri, car with a- . dutiable value of £2OO paid'about .£44'in duty until the tariff -amendments announced three woeksyagp.. when l the- increased rate brought tlie figure to about £52. The alteration announced yesterday lifted the Canadian ear out of itk grouping with the English make and the duty on a £2oo‘ vehicle will be about £lO4.

Following are examples of the new. rates applied' to- a £2OO car as. compared with those-operating a few .weeks ago: Old New',, duties, duties., £. £. British' ... 44 52 Canadian , 44 104: American 104 137

The above figures embraces both ordinary duty and body tax. In, the case of British' and American products the new surtax is also included, but.: the new rate for Canadian cars does not include'the surtax. The effect is to give an increased preference to English ears; and to decrease the discrepancy between American cars and cars which have been classed as Canadian and admitted, on the English basis in. the past.

IMPORTERS PLEASED

The importers of American cars arc pleased with the latest amendment. The representative of one popular make stated yesterday that tlie scale? had been loaded very 1 heavily against American, ears in the past. Although it was regrettable that tlie duties were 1 * how divcoui aging- to the motor industry generally, the amendment at least put American and Canadian products jn a fairer ratio, he said. “Now we are both in it up to the, neck,” remarked the- car agent.

AMENDMENTS GAZETTED

The amendments were announced in the. Gazette last evening. It is set out that the duty on a Canadian, motor vehicle shall be 35 per cent., with an additional. 15 per cent., body , duty, a total of 50 .per, cent., overall ad valorem. Where the value, of the. vehicle, exceeds £2OO. the body duty in excess of tin's amount is reduced, to per cent. Tires and engines for, mqtor vehicles from Canada will be dutiable at 35 per cent.