Ramp in Road Haulage Alleged
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AN allegation that there had been a ramp in the road haulage industry. which had sought and found in the increased fuel tax an excuse to raise costs beyond needs, was made in the House of Commons this week by Mr. W. Ross. during the third reading of the Finance Bill.
The Chancellor of the Exchequer, Sir Stafford Cripps. said that the higher fuel tax was not inflationary. A complaint had been made that it was going to affect adversely the country's trading capacity, a complaint backed by flagrant exaggeration of the tax's effect on the prices of commodities.
The increase in the cost of running lorries, he said, was around 4 per cent. The effect on prices would depend on their value, but it certainly would not be much. The tax was imposed to allow a lower rate of income tax.
He reiterated that the purchase tax on goods-vehicle chassis was not to raise revenue, but because the ratio of home-to-export • sales was more than could afforded. During the first five months of this year 5,000 to 6.000 vehicles were• exported each month. compared with 3,000 to 4.000 during the corresponding period last year. This seemed to show that there was an overseas market for more vehicles.