Tax on Petrol is Viewed Unfavourably

Sun (Auckland), Volume I, Issue 183, 24 October 1927, Page 1

Tax on Petrol is Viewed Unfavourably

REVENUE FOR ROADS

EQUITABLE METHODS URGED

Some anxiety that the additional motor taxation forecasted by the Minister of Public Works might take the form of a petrol tax is shown by local motorists. While a section of the farming community expressed its preference for a petrol tax when taxation methods were first discussed, it was generally conceded that, with the varying uses to which petrol is put, as a revenue-pro-ducing means it was impracticable. The difficulty of ensuring that petrol purchased ostensibly for motor launches or oil engines is really used for those purposes was a point largely stressed by Southern branches of the Farmers’ Union in recording their protests against the imposition of a petrol tax. TYRE TAX SUFFICIENT That if additional revenue were required it could easily be obtained by an increase in the tyre tax is the consensus of local opinion gathered by a SUN representative this morning. It was pointed out that each j-ear the revenue from motor taxation has exceeded the estimate. For the year ended March 31, 1926, the excess was £101,737. As a result the Main Highways Board increased its subsidies to local bodies from £1 for £1 to £2 for £l. Last year, however, the Government had not transferred to the Highways Board the annual quota of the loan authorisation of £3,000,000, which was to be expended over a period of ten years. This, it is pointed out, would amount to £300,000, and was part of an annual income of £500,000 to the construction fund, the remaining £200,000 being an annual grant from the Public Works Department Fund. With the original programme adhered to, that of making available annually the sum of £300,000 provided for, it is the opinion that the board could funcj tion satisfactorily. If any further funds were required, it is considered that they could be obtained by an increase in the tyre tax without any new form of taxation.