WINSTON’S BOMBSHELL

Sun (Auckland), Volume II, Issue 336, 23 April 1928, Page 9

WINSTON’S BOMBSHELL

HEAVY MOTORING TAX AMAZEMENT IN BRITAIN BUDGET PROPOSALS (United P.A.—By Telegraph — Copyright) (Australian Press Association) LONDON, Saturday. The Cabinet has finally approved of the Budget. A principal feature is a reform in the system of rating, which is aimed at assisting agriculture and industry, the former by freeing agricultural land from rates, and the latter by the allocation of large sums to relieve the “black spots” of industries from rating liabilities. It will be a highly controversial scheme, as it rearranges the functions of local government. The “Daily Express” says a bombshell is the decision to tax petrol, in addition to the present high horsepower motor tax. It is understood that Cabinet succeeded in checking the project only as regards the amount of the tax. The secret as to its exact figure has been well kept. Wellinformed circles believe a compromise was reached at 2d a gallon. Over 1,000,000 motorists are preparing to declare war on the Chancellor of the Exchequer, Air. Winston Churchill, in the event of the fulfilment of what is described as his amazing decision to add a petrol tax to the present tax of £1 per horse-power. For the past five years motorists' organisations have been agitating for the removal of the horse-power tax, and the substitution of a tax on petrol. MILLION SIGN PETITION The culminating point came when a petition with over 1,000,000 signatures in favour of this step was presented to the Chancellor. The elusive Air. Churchill gave no hope that the reform would be granted. Now, on the eve of the Budget, says the “Express,” it is learned that the Chancellor proposes to add a tax of anything up to 4d a gallon on petrol without removing the horse-power tax. Motorists are astonished, and even in the face of a definite announcement say it is too ridiculous to be believed.

The evening papers to-day make a feature of the proposal, which is regarded as a bombshell. In the past three years all the Budgets have contained a series of new taxes. The raids on the motorists’ road fund have run into many millions of pounds.