Petrol Tax Should Cover All Taxes

Sun (Auckland), Volume I, Issue 193, 4 November 1927, Page 16

Petrol Tax Should Cover All Taxes

4D IS EXCESS OF NEEDS

MORE OPEN DISCUSSION With the idea of giving the Chamber of Commerce a lead from the traders’ point of view, representatives of the motor trade, retail petrol sellers, bus owners, carriers, and others, met in the Chamber of Commerce yesterday. “It has been realised that a tax of some sort is advisable,’’ remarked Mr. H. O. Wiles, who presided. “However, the deficiency on last year was £140,000, and the Government was asking for an extra £720,000 a year. It had been felt that the tax should eliminate the small individual taxes. It had been understood that the fourpence a gallon would allow of this, but they had be«n amazed to find, when the fourpence tax was proposed, that there was no suggestion of the individual taxes being cut out/’ “It was obvious that the movers of the tax proposition came from the country districts, and they seemed to overlook the fact that the great majority of the cars were in the four centres, where the ratepayers and motorists were already paying heavy taxes for the good roads they had built. There had to be a remedy over the service drivers, against whom the Government had a grouch, but why, he asked, should there be an unjust tax on all motorists to catch them?’* It was generally recognised that the tax was coming, but there must be some modification. A l£d tax would produce £IBO,OOO. Mr. A. G. Lunn said the chambers had considered the taxation, and had. tried to see some means of putting on a tax that would not involve such heavy collection of I'ates and supervision, as the petrol tax. AGAINST INDIVIDUAL TAXES Mr. G. W. Spragg told the meeting that the Traders’ Association had decided to protest against the amount of the tax, though it had no obj**ction to a reasonable tax on petrol, provided the funds were spent solely under the direction of the Highways Board. They did not want the amount frittered away to local bodies. Mr. Leonard, representing the dairying interests, said the farm suppliers would have to meet considerably increased carrying costs. “The carriers have supported the petrol tax, always with the view that on it being instituted the heavy traffic and registration taxes should go,” remarked Mr. W. A. Phillips. “We would be better off with even a higher petrol tax.” He remarked that the carriers were meeting in Wellington next week to discuss the position. “We want one tax, not three or four different collections, ail very expensive,” was the tone of the meeting. “There appears to be an extravagant demand for money that cannot be spent. There should be some method of controlling expenditure,” remarked Mr. R. H. Bartley, of the Power Board. “We cannot see the idea of raising

five times as much as is required.” FOURPENCE COVERS ALL “There is no doubt Mr. Coates meant that fourpence would cover all the taxes,” remarked the chairman. Mr. Phillips mentioned that the heavy traffic fees collected in the Dominion amounted to £225,000 a year. The North Shore Transport Company representative mentioned that the tax was going to cost it about

£1,200 a year. All its taxes amounted to about £3,000 a year. “We might carry on with the present fares if the tax did not increase more than twopence a gallon, but more than that will just have to mean increased fares,” remarked another bus company representative.

Figures given to the meeting showed that America’s maximum tax was five cents (approximately 2£d). In New York it was two cents, and in Canada an average of three cents. “It requires a lot of justification to put on one equal to eight cents here/” was the comment.

“We are getting hard hit enough by the harbour charges now, without any extras,” remarked Mr. Bentley, representing the power-boat owners. A motion was passed opposing the amount of fourpence, and requesting either a reduction of the tax or the abolition of the individual motor taxes.

Further, the meeting expressed the opinion that, in view of the cost of dealing with exemptions and supervision, a tyre tax was more advisable than a petrol tax.

PROTEST FORWARDED

TYRE TAX FAVOURED In forwarding the resolution to the Prime Minister, Mr. A. G. Lunn, president of the Auckland Chamber of Commerce, stated that in supporting the resolution which was passed unanimously by representatives of the interests enumerated, the Auckland Chamber of Commerce was of opinion that, while further taxation may be necessary for the improvement and maintenance of roads, the amount asked for by the Government in its tax, namely, nearly three-quarters of a million pounds, seemed excessive, and was certainly a further hardship on the already overburdened taxpayer. Mr. Lunn also stated that as the collection of the petrol tax, with its scheme of exemptions for farmers, launch-owners and others, would involve considerable difficulty and expense and might lend itself to abuse, it. was thought desirable by the chamber that the money required should be raised by an increased tyre tax rather than by a petrol tax. Further, the chamber . would strongly impress on the Government the desirabilitv of having only one form of taxation on motor vehicles.

JUBILATION AT OPOTIKI

BETTER ROADS IN VIEW “SHOULD BE NO EXEMPTIONS” (From Our Own Correspondent) OPOTIKI, To-day. Great satisfaction is being expressed among Opotiki farmers at the advent of the petrol tax. Since the Main Highways Board was formed, it is said, the main roads in the county have been steadily deteriorating, as most of the rates have been spent in an endeavour to keep the main highways in good condition. As Opotiki is not served by rail, the roads have been carrying a very heavy service car traffic. It is expected that the petrol tax will be the means of reducing the county rates which are now considered by the ratepayers to be unbearable. Farmers who have gone carefully into the matter consider that the exemption of milking machine engines from the tax is practically unworkable. They consider that there should be no exemptions, as the saving in rates will more than counter-balance the increased cost of running stationary engines.