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Tax Policy Raises .Distribution Costs by Up to 15 Per Cent.

16th March 1951, Page 32
16th March 1951
Page 32
Page 32, 16th March 1951 — Tax Policy Raises .Distribution Costs by Up to 15 Per Cent.
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Which of the following most accurately describes the problem?

rONCLUSIVE evidenceof the rise

in the cost of living, brought about by the increase in taxation on road transport, is contained in a memorandum which has just been prepared by the British Road Federation. It is based on the experience of member organizations. The British Federation of Wholesale Confectioners states that expenses involved in running motor vehicles amount to 12 per cent. of the total cost of distribution. The increase in taxation introduced in last year's Budget raised costs by about 4 per cent. The Carers' Association of Great Britain says that because of the high cost of transport, certain foodstuffs are " frozen' in parts of the Highlands of Scotland.

Ease Difficulties According to the National Association of Master Bakers, Confectioners and Caterers, if delivery services are to be maintained, members' difficulties must be ameliorated.

In rural districts of England and Wales, the additional 9d per gallon imposed on the fuel duty has raised the cost of milk production by about id. a gallon, avers the National Dairymen's Association, In the year ended September 30 last, it is estimated that the rise in fuel duty cost rural retailers in England and Wales a total sum of £427.700.

The National Federation of Grocers' and Provision Dealers' Associations, the National Federation of Meat Traders' Associations and the British Tarpaviors' Federation all confirm that transport costs have been increased by about 10 per cent, Building Industry Distributors put the figure at 8 per cent.

Federated Home Timber Associations say that the increased fuel tax has raised the cost of hauling round timber by 71-10 per cent. and of sawn timber by about 7i per cent. Purchase tax on goods chassis has advanced annual depreciation charges by about 21 per

cent..

The Road Emulsion Association cona30 firms that an overall increase of about 121-15 per cent. has resulted.

The Coal Merchants' Federation of Great Britain finds that the cost of distributing domestic fuel has risen by about 4d. per ton.

In the petrol-distribution trade, fuel tax has advanced delivery costs by 5 per cent.

Evidence from the Road Haulage Association points to an increase of 91 per cent, in operating costs brought about by higher taxation.

Members of the Scottish Retail Drapers' Association are having to shoulder an extra 41-5 per cent. in costs.

The B.R.F. declares that the present level of taxation on road transport is unreasonably high and is detrimental to the national interest by raising unduly the cost of transport. It is argued that there is no justification for imposing on road transport a tax in excess of an appropriate contribution 'towards road expenditure.

The time has come, says the B.R.F.. to decide whether the virtual abolitiorr of the Road Fund and the policy of taxing road trans )ort for general revenue purposes are in the public interest, and, if not, to' determine new principles of taxation.

The BR F. represents 101 national organizations and some 250,000 concerns, ranging from one-man businesses 'to large industrial undertakings.

LONDON TRAM CONVERSION: 92 MORE TO GO

THE third stage of London's tramreplacement programme comes into effect on the night of April 7-8. Three tram routes, 16, 18 and 42, will be superseded by two new bus services. This conversion will see the end of trams in Purley. Croydon, Norbury and Streatham, and a further reduction in tram services through Lambeth, Southwark and Westminster and along Victoria Embankment.

Ninety-two trams will be withdrawn, and 106 buses introduced. These totals will bring the number of abandoned trams to 280, and of new buses to 346.


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