UNIQUE (-AS-YOU-GO" TAX PLAN
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A System in Which Goods Vehicles Would Pay According to Carrying Capacity and Passenger Machines by the Number of Seats. The Removal of Restrictive Legislation Which Would Give Fresh Impetus to Designers to the Benefit of the Country and the Motor Trade. A Scheme by Which Registration Offices Would be Rendered Redundant with a Consequent Monetary
Saving
By G. V. B. Cooke
MUCH ink has been used in putting forward various schemes for altering the present system of taxation of motor vehicles, so perhaps a little more will not matter. The greatest difficulty is to find a formula which, whit being fair to the majority of users, will not, at the same time, place any difficulty in the way of manufacturers,• or have any effect in hindering progress in design. At the same time, the Government has decreed that any new system adopted must bring in approximately the same revenue. That this is a formidable task has been proved. bythe .fact that none of the proposals so far made has found anything like agreement.
The proposals, to date, undoubtedly favour certain sections, at the expense of others. This applies particularly to the cubic capacity tax and the ad valorem tax suggestions.
The following scheme has been formulated wiith the realization that it is impossible to please eterybody, and that it will probably show a falling-off in revenue. At the same time, it is felt that, whilst it may not be immediately acceptable in its present form, it is worthy of consideration, if for no other reasons than that it will give manufacturers a free band in design and encourage them to give us better fuel consumption.
It will stimulate interest in the larger types of private car, which are more acceptable in the export markets. To the man in the street such a scheme should be even more acceptable, as he would pay a tax according to the extent to which be used the roads, and under a system of " Pay as you .go."
Present System Farcical The present method of taxing commercial vehicles is farcical. It has brought about a situation where machines have to be built down to a weight, and the cheese-paring in this respect has now reached a stage bordering on, if it has not already crossed, the danger line. A commercial vehicle should be taxed by the weight it carries, irrespective of its unladen weight. This would be fairer to the operator as well as the manufacturer. It would enable users to purchase vehicles more suited to their requirements rather than those in a low-tax category, which they proceed to overload, to the detriment of the machines and the safety of the public. It would enable designers to produce better, safer and more suitable vehicles. It can safely be left to the manufacturers not to turn out exceptionally heavy • vehicles, as this 14 ould tend to make fuel and tyre costs excessive.
It is safe to say that no trade or industry has shown up better in the war than the motor trade, in spite of all the petty restrictions under which it has laboured. What the haulage industry has accomplished has yet to be made public, and it will be to our everlasting disgrace if we allow this heritage to continue to be the butt of the railways and other vested interests, and to be bled dry by unwarranted taxation.
All taxation from all classes of road user ,should be devoted in its entirety to the improvement and maintenance of roads, cycle tracks and footpaths. The ridiculous weight limits should be abolished, once and for all, and designers given a free hand to design vehicles suitable for their job. The war has proved that these weight restrictions are quite unnecessary as the roads have stood up to amazing loads, and this, in spite of the number of tracked vehicles using them.
The suggested petrol tax seems to find favour with the majority of road users except, perhaps, with those covering very big mileages. We cannot expect the abolition of taxation, so let us consider a scheme on the following lines: Instead of an annual road-tax, institute an annual plate-tax, plus 2d. per gallon on petrol and oil fuel, and Id. per pint on lubricating oil. The plate-tax, in the case of private cars, to be £5 per annum, irrespective of horse-power or price. The plate should consist of a pressing in aluminium, or other similar metal, of suitable dimensions, to be decided by a committee representing the manufacturers and the distributors.
Each plate should last only one year, when the old one must be surrendered (for melting down) and the new one supplied, with the year, etc., for which it is operative stamped on it, on payment of E5. Various dolours could be arranged so that the authorities could see at a glance that the current plate-tax had been paid.
The present motor-registration offices could be done away
with, thus saving the country a considerable 'amount of money. The plates could be supplied to approved motorvehicle distributors for allocation and collection of the tax, at a discount of, say, 15 per cent., of, if this were not acceptable, they could be issued through the local Police. The letters on the plate could still apply to counties, but it would be preferable to have one letter only, with the number going up to 99,999. The numbers would, of course, differ each year, but a record of this would be kept in a smaller edition of the present registration book. Quarterly, or half-yearly, licences would not be considered, excepting in the case of a car purchased after, say, August 1, when the plate-tax would be :C2 10s. for the remainder of that year.
How the Scheme Works
Table A sets out cars of various h.p. and shows the all-in tax payable for yearly mileages from 10,000 to 40,000. The m.p.g. figures shown are based on makers' claims, which is considered fair for the purpose of comparison. Lubricating oil has been dealt with on the basis of changing one gallon every 2,000 miles, and this is adopted throughout the range of vehicles. No account is taken of the varying capacity of sumps, as it will be easy, for anybody interested, to calculate the extra cost for the sump of his particular vehicle. Obviously, the figures for oil are on the low side, but they are considered a fair revenue average.
It may be pointed out that this scheme is, perhaps, somewhat hard on cars up -to 10 h.p. It is, but only if they do large annual mileages.and, after all, those who use the roads most should pay the most. It isr however, an added incentive to the two-car per family idea, and it is interesting in this connection to compare the taxation cost of running two cars, one large and one small, under this scheme, as against one large car under the present method of taxation.
Referring to 'Fable A, it will be seen that the tax on two cars, of 20 h.p. and 8 h.p. respectively, covering between them 50,000 miles per annum, will cost only 22 10s. more than the present tax on one 20 h.p. car. Again, the tax on two cars, of 30 h.p. and 8 h.p. respectively, shows a saving in tax of 27 16$. for 50,000 miles running, as against the present tax on one 30 h.p. car.
Turning to commercial vehicles (Table B), the plate tax would operate as for private cars, except that it would be 22 per-ton carrying capacity, with a minimum plate-tax of 25. Thus, a 1Q-15-cwt. or 1-ton vehicle would pay a minimum plate-tax of 25. The figures are self-explanatory and form exceedingly interesting comparisons. Here, also, the operator who does the biggest mileage pays the biggest all-in tax, which is as it should be
In deciding the carrying capacity of a vehicle of 2 tons and upwards, no consideration is given to any weights of less than 1 ton. It is absurd to differentiate between, say, 50 cwt. and 3 tons in designing a commercial vehicle. It is suggested, however, that as it is extremely difficult to judge loads exactly, a margin lei, say, 10 cwt. should be allowed on the stated capacity of each vehicle designed to carry 2 tons and upwards, so that an operator found carrying, say, 5 tons 8 cut. on a 5-ton vehicle would be in order. If, on the other hand, he i9 found carrying over 5 tons 10 cwt. on a 5-ton vehicle, the consequences should he made so_ severe that he will hesitate before doing so again. The unladen weight of the vehicle would be painted cm the side, as would 'the maker's stated carrying capacity.
Passenger Vehicles by Seating The system of taxing p.s.v.s is, again, by carrying capacity but, in this case, i0s. per seat is suggested (Table 1)). Here, again, there is a, falling-off in revenue as compared with the present system of taxation, but, and this is important, it should lead to a substantial reduction in fares. After all, p.s.v.s, in the nature of things, are for the convenience of the travelling public, which is entitled to the lowest .poseible fares.
The absurd restrictions as to length, width and weight of p.s.v.s should be cancelled at once. If limits are thought to be necessary, then a length of 30 ft. and a width of 8 ft. should be the basis of discussion between manufacturers' representatives and operators. These measurements are suggested because it is felt there is a limit to the number of passengers a conductor can conveniently cope with The question of weight may safely be left to the vehicle maker. One m.p.g. represents quite a useful sum per annum in a large bus undertaking, and manufacturers may be relied upon to keep weight down to the lowest possible safety margin.
Tables C and E also show comparative figures for certain .oil-engined vehicles. The tax on oil fuel is the same as for petrol-2d. per gallon. Oil engines show up to advantage and again, this is as it should be, as they save not only fuel, but imports and shipping space. '
Motorcycles, electric vehicles and steamers have not been considered, but it should not be difficult to arrive at a satisfactory plate-tax for these vehicles which would be reasonable and fair to everybody.
Pedal Cycles not Excluded The old thorny problem of pedal cycles should now be tackled once and for all. A plate tax of 5s. per annum should be charged, on every Machine, and a small plate , issued annually. Surely, this sum is reasonable and well withig the means of every cyclist ? It could be used to provide cycle tracks, which would go a long way towards reducing accidents.
It is assumed, of course, that the foregoing taxes would be the sole method of taxation, and that the purchase-tax on motor vehicles of all descriptions would be abolished.
These suggestions are submitted as a basis for discussion of a scheme which would be acceptableto the majority of road users, and at the same time be of benefit to the country and the motor trade as a whole. Designers would he given a new outlook and, with the experience gained during the war in light metals and other materials, we ought to anticipate some startling changes in design in the not-toodistant future. Square-engine and long-stroke-engine adherents would have the chance of proving their claims unhampered by legislation.
The figures quoted in the various tables are not accurate to the last penny, as they take no account of fractions of gallons. They are meant only as a guide, for comparison purposes. Finally, as all fuel is already taxed, the machinery is actually in existence, so that there is no question of added expense, The saving in the disbanding of all local motorregistration offices should amount to a considerable sum.