Remove Taxation to Help Employment and Exports
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AS the question of motor taxation is receiving the attention of a committee of the Road Transport Organization Joint Committee, the North Western A.R.O. has recorded its views on the subject. It says that the ideal is the abolition of all taxation on motor vehicles, incluJing the fuel tax.
This ideal is submitted as a practical proposition which would result in a fuller measure of employment and give a fillip to the motor-vehicle export trade of this country. At all events, the total amount of motor taxation should, until the Chancellor can forego the revenue from this source, be capable of a progressively annual downward adjustment of 25 per cent, of the total amount required for the upkeep and Maintenance of the existing main.roads, and the interest charges incurred on new loans for the construction of new main roads.
Motor taxation, while in force, should be applied solely towards the upkeep, maintenance and improvement of main roads and the interest charges on loans for new main roads.
It is emphasized that the present system of motor taxation is discriminatory in its incidence and penal in its operation and should be opposed, with a view to its early repeal, on the ground that it is a violation of the equitable principles of the canons of taxation.
The cost of constructing all new roads should be capitalized. The annual interest on such outlay should be provided out of national taxation.
In constructing new roads, regard must necessarily be had to the needs of industry and agriculture, and the desirability of linking up the roads with air, canal and coastwise services, as well as to the requirements of military security and to the importance of .enabling citizens to enjoy access to the amenities of the country; on these grounds road construction should be a national charge. There should be equitable allocation of the cost of main-roads maintenance and repairs on the general body of ratepayers. Local taxation, covering local road costs, should be continued. Motor taxation by way of licence duties, passenger-seating capacity, fuel tax, unladen weight, and the purchase tax should be entirely abolished. It is urged that a commencement should be made forthwith by pressing for a reduction of all such taxes by 25 per cent, of the present sums annually; in four years the taxes would entirely cease. The equivalent taxation should be raised from the general body of taxpayers by means of income tax and/or sumptuary or luxury taxation.
While taxation remains in force, licence periods should be annually, quarterly, monthly and weekly, and all forms of licence should, be obtainable from any post office,
It is suggested that a letter signed by all the associations stating the measure of the agreement reached should be sent to all M.P.s, pointing out the vicious operation of the present discriminatory taxation on the devtlopment of road transport. It should also be made clear that the roads are a proper charge on the community as a whole and not a particular section.