HEAVY TAXATION

Rotorua Morning Post, Volume 2, Issue 338, 27 September 1932, Page 2

HEAVY TAXATION

BURDEN MUST REDUCE THE N'UMBER GF VEHICLES. j Six gallons, please! And there is no change out of 13s and the motor- ! ists proceeds 011 his way bearing in rnind that out of the 13s just paid 4s 3d rsprcsents his payment of Petrol Tax. What is the eifect? It is clearly evidenced in the latest i"2turns of I petrol importations! But the falling off in petrol importations for three months ending 011 June 30, 1932, represents a reduction of 13 per cent. 011 last year. The July, 1932, figure, however, makes the I'osition considerably worse. For ihe four months ending July, 1932, there is a reduction of 17 per cent. as tomparcd with last year, while the July figure itself shows a reduction of 30 per cent. on July, 1931. | There is only oen explanation of | these figures and that is the law of | diminishing returns has commenced j to operate. | The great majority of motorists today ave operating their vehicles ac ! the minimum possible cost, and the | cost of petrol is the largest single jl item which they have to face. Taking !! this into account, together with the ! fact that the Petrol Tax represents • 175 per cent. of the declared value '' and represents one-third of the actual selling cost, it is not a matter of surprise that we have reached the position which the figures now reveal. | The motor levy to-day is the heavi- | est on any non-luxury form of proi perty. j Taking the purchase price of a car ■ at £350 and its life as seven years, j the total tax paid on such a vehicle, ! including duty when imported, would [ yiel^ to the State no less than £250, which is equivalent to 70 per cent. of the original cost of the vehicle. In the absenos of some relief of motor taxation there will be a further very unpleasant reduction in the purchase and use of motor vehicles which have become such an intrinsic part of Kew Zealand's transport.