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THE MOTOR TAXATION INQUIRY.

13th February 1923
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Page 9, 13th February 1923 — THE MOTOR TAXATION INQUIRY.
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Which of the following most accurately describes the problem?

A New Definition of Motor Spirit Suggested, the Flashpoint Being 100 deg. F. and the Boiling Point from 180 deg. to 210 deg. C.

''HE .Departmental Committee appointed by the Ministry of Transport on the Taxation and Regulation of Road Vehicles continued 'its sitting at the Middlesex Guildhall on Tuesday last, the 6th inst., for the purpose of hearing evidence upon the suggested revision of the taxation of motor vehicles. In our last week's issue we dealt with the proceedings on the opening three days. .

On Tuesday last the Committee was engaged in taking the evidence of technical experts upon the subject of motor spirit. The evidence was of general interest to all Motor vehicle users, but for the Most part it concerned the question of tests that should be applied to imported oils for the purpose of taxation.

Evidence of the 'Chemists.

Dr. H. 0, Colmaii, who is a doctor of science and doctor of philosophy, devoted eonsiderable time to a definition of taxable motor spirit. Hedefined it as "any refined spirit consisting essentially of hydrocarbons and having a ffashpoint of below 73 degree's F. which, when distilled by a specified Method, leaves • not more than 10 per eent, by volume of residue at 180 degrees C. (350 degrees F.)." Dr. Colman explained his specified testing method, and, discussing the revenua collecting facilities, said he considered that. attempts to evade the duty by bringing in the spirit in small bulk were unlikely on any material scale, and attempts at evasion with large deliveries were even more 'unlikely. The definition and test he had suggested coadd be amended to include imported tetraline and dekaline.

Witness dealt with the regulations for imported materials, which might contain a proportion of taxable motor spirit obtainable from them by distillationeand made a number of suggested tests for refined petroleum products, crude petroleum products, and, under certain, conditions, he thought the crude oil should be admitted free to the refiners and that the tax should be payable on their production of motor spirit, controlled in a similar manner to the alcohol production of breweries.

Replying to Mr. E. S. Shrapnell-Smith,, Dr. Colman said he had not considered the effect of his suggestions upon the motor spirit so far as the motorist . was concerned. It was outside his scope and he was not even a motorist. '

'Mr. Shrapnell-Smith : " If it meant an inferior spirit it would not be a very pleasant experience? "

• De.Colman : Ido not think itwould. That is always a question of supply and demand." •. Witness, did, not agree that in View of the changed , conditions of the oil trade, from the time when petrol was a drug on the market, to the present, when it was one of the highest-priced fractions, that the present conditions might bring about a point when the oil companies would get. sufficiently, high prices for the fractions, classed as motor, spirit that they could throw away excess production at the other end

of the distillation.

The Much Debated Definition of Motor Spirit.

Dr. A. C. Chapman, analytical and research chemist, said he was in substantial agreement with the evidence of Dr. Colman, and further agreed with Dr. Colman's definition of motor -spirit. Upon the subject of kerosene and petrol, Dr. Chapman said that, having regard to the present considerable difference between the prices of kerosene and of petrol, the fact that the former wasP never, so far as. he' was aware, distilled for motor spirit was sufficient to show that the proceedings would not be remunerative, and the suggested duty on petrol would not be enough, in his opinion, materially to affeet the position. In his opinion, if the lower' fractions of petroleum were extracted and added to petrol it would depreciate the quality of the burning oil and the petrol to which it was added.

Sir Capel Holden stated that the only object in evading a motor spirit tax would be eboimmy by the use of untaxed heavy fuel. That had not been done before, and the explanation was that the engine which was suitable for using heavy oil a.s fuel had not been found practicable for general use in road motors.

Continuing, witness said that, from the commencement of the Motor. movement, much time and money had been spent in an endeavour to solve the problem of adapting the engine of the road motor, by means of special .carburetters, vaporizers, etc., to use heavy fuel, but the solution of the problem was not appreciably nearer now thah it was then. The heavy hackney and haulage types of vehicles, for motives of economy, already used low grades of motor spirit which were so amply loaded with the heavy fractions of petroleum that an admixture Of paraffin would seriously interfere with the functioning of the vehicles.

For reasons technical, practical and economic, and backed by the experience of over 20 years of road Motor usage, Sir Capel Holden said he was of the opinion that the percentage of evasion by the use of paraffin was. well within the small percentage of evasion inseparable from any system of taxation. He agreed that the Customs and Excise system applied to alcohol should be applied to the motor spirit.

The Fifth Day's Proceedings.

The decision of Dr. Colman and Mr. Chapman to change their definition of motor spirit by increasing tbeflashpoint from 73 to 100, led to Sir Capel Holden being examined at length when the Committee met on Wednesday.

After a considerable amount of questioning, Sir Capel agreed that so many lamp, oils would come within the definition that he would Consider the matter and submit a new scheme at the next meeting.

Witness agreed that if an engine could be devised that would burn kerosene it would be used by commercial motors.

The chairman (Sir Henry Maybury): "And if kerosene was undutia.ble they would not 'contribute anything toward the wear and tear of the. highways." Witness. ." That is true, but the Government should see that such people would be Made to pay duty."

" iii oine way you Would 'tithe mixing with paraffin statutory offence?"--" Yes." , . " But if I buy spirit upon Which. there is a duty, and I mix it with something which the Customs says is not dutiable, am I indictatile?-"—No answer.

" You see, it becomes very involved, but, as you say you will produce a new scheme, I.will not pursue the subject. With very greatrespect. there is none of us who really knows what motor spirit is."

The chairman proceeded to mention the case Of an engine on the Continent thad ran on heavy oils., and asked : " Theit would be a very desirable thing for the motor industry in this country? "—" Yes."

Mr. Shrapnell-Smith pursued the same line of

inquiry, and witnesS said he would tax.all fuel used for driving motorcars.

Mr. Frank Pick pointed out that with the definition suggested it was possible for a, firm to keep one tank of non-dutiable material and one of dutiable spirit and fill their lorries, or buses, from both of them.

It was pointed out that this could not be regarded as evasion of duty, because the Excise would have to accept the definition, and witness agreed. The chairman said that the scheme submitted had the definition for its basis and it meant an alteration of the definition and, perhaps, a new scheme.

The committee then adjourned, and, resuming, witness said he had consulted with his colleagues, and, in view of the difficulties that might arise from the acoeptance of the definition, he suggested an adjournment to reconsider the position until next Tuesday. This was agreed to, and the committee adjourned.


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