Motorists Surprised

Sun (Auckland), Volume I, Issue 190, 1 November 1927, Page 8

Motorists Surprised

PETROL TAX A BOMBSHELL

Lew Viewed W ith Much Concern

A SIMULTANEOUS explosion of all the benzine in the C ity could barely have caused more surprise than did the announcement that a tax of 4d a gallon was to be imposed on benzine for motor-cars forthwith. Although the possibility of the tax has been mentioned several times during the past fortnight the news of 1 <: huge increase in the price of petrol as 20 per cent., which the 4d tax practically is, came as a bomb-shell.

effects of the imposition of the -L tax will be very far-reaching:, and the subject was thus roundly discruss*yl, and as roundly condemned, by practically everv motorist in the city to-day. Generally the opinion is that there will be such an outcry that some modi-

fication will be necessary. The placingon petrol of a 2d tax might have passed merely with protests and quiet curses, but when the average motorist has to pay out Is to 3s extra every time he has his tank filled the position becomes more serious.

On the average the increased tax over all the motor vehicles in the Dominion will add between £4 and £ 6 to the annual running account. Even that does not bring the taxation up to that of some other countries. England rates on horse-power, a very objectionable flat rate, while Australian taxes average out at some £5 yearly for registration and a 3d a gallon petrol tax. Perhaps the biggest consumer in Auckland is the City Council, which is naturally very perturbed about the position. At present the council is using some 6,600 gallons of petrol a week, and on this .basis the yearly increase in its bus running expenses will be some £5,720. “If .we do not get exemption I am afraid this will prove about the pro-

! verbial last straw, ’ remarked Cr. J. !a. C. Allum this morning. Cr. Allum naturally considers this as , but one more telling argument in fav- ! our of tramway extensions. ! The motor traders, especially those : dealing in big cars, are very much I concerned. One of the first questions iin car buying is that of running cx- | penses, and many of the traders view the new tax as a direct assistance to the sale of British and Continental small cars. Service cars will be very severely affected. It is recognised th,*t. with the considerable competition at present, many drivers are only just keeping going, and the increased fax can only result in an increase in fareAother aspect Is that Auckland motorists, or a big percentage of them, | are already paying directly or otner- | wise for extensive concrete roads, and I will now be called upon to pay a huge | sum annually that can only give a great majority very little return. I " This morning the oil comp.ini- > vwi e | unable to indicate when the retail price of benzine would become effective. I Advice has to come from Wellington.