THE PETROL TAX.

Manawatu Herald, Volume XLVIII, Issue 3716, 12 November 1927, Page 2

THE PETROL TAX.

WHAT THE MOTORIST PAYS. SOME STRIKING FACTS AND FIGURES. A very interesting and instructive article in connection with the pterol tax was published in the Dominion on Tuesday by “Spotlight.” “Petrol” says: “A feature of interest in the taxation of petrol for roadng purposes is that the tendency with this form of tax is for the rate of tax per gallon to increase steadily. Such, at any rate, has been the experience in the Uniteed States. New Zealand began its motor taxation for highways purposes in 1922 with the imposition of a duty of 25 per cent, on tires, and in 1925 this was followed bv the annual license fees on motor vehicles. In 1924 a local tax on motor vehicles, provided for in legislation passed in 1917, was also first collected in the Wellington City and suburban district. “As the main highways scheme was not brought into operation until June, 1924, the Dominion has thus run three years before the imposition of further motor taxation. “The sum total of taxation levied pn the motor vehicle owners of the Dominion, with the new petrol tax included, appears to be about £2,300,000 per annum. ..; • “The total of general taxation and local body rates combined that was collected in the Dominion in 1920 appears to have been a little over £22,000,000, so that, the volume of motor taxation, represents about 10 per cent, of this sum. HOW, IT WORKS OUT. “Over the whole body of 160,000 motor vehicle owners the prospective volume of motor taxation works out at about £l4 per head, or between 5s and 6s a week, and if the smaller payment by the 35,000 motorcyclists is allowed for, the contribution by the car and truck owners Will be proportionately increased.

“Of the total volume of motor taxation roughly, £1,000,000, the sum paid in Customs duties on motor vehicles apart from tires, goes into the general revenue of the State, and by some curious mental process is usually ruled out of consideration by those who assert that the motorist contributes little to the revenue. The balance of £1,300,000 (on the basis of last year’s figures) is available for expenditure by the bodies directly concerned with road and street maintenance. “So far as motor taxation is expended on the improvement of roads relatively to the volume of traffic on them, if stands on a different footing- from general taxation, and is more in the nature of a payment for special services rendered. The value of that service, however, depends—(l) on the correct distribution of the available revenue so as to give the maximum benefit to the maximum number of motor vehicle owners, and (2) also on efficient engineering control so as to give the maximum mileage of adequate surface for the traffic borne by the various roads. The highways scheme up to date has fallen down badly on (1), and a large number of local authorities in the Dominion have made but the scantiest study of (2). Without stringent precautions to secure a sound and economical expenditure, there is a very real danger of a sudden distribution of £720,000 per annum of motor tax easy money resulting in a gigantic orgy of waste throughout the Dominion.”

Replying to criticism of the petrol tax in the House, Mr. Coates (Prime Minister) said: His own opinion was that the motorist would pay the tax provided that he got the benefit from it. That’s the crux of the whole thing. Owners of motor vehicles contribute more in taxation than any other class and are not getting a fair return in the way of improved highways that they are entitled: to, and never will, until the construction and maintenance of main highways are controlled by National .Boards comprised of experts.