Commercial Users Disappointed
Page 31
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FROM the point of view of the commercialvehicle industry—and in this term we include both manufacturers and operators—no great gratification can be expressed at the terms of the new Budget. It had been fairly confidently hoped that at least some small concession would be given, especially in respect of the excessive petrol duty. -As the result of last year's Budget the taxation of goods vehicles has been enormously increased, whilst that of private motor vehicles has remained the same. When the Economy Budget wasntroduced by Lord Snowden he referred to the extra 2d. on petrol as being an emergency measure, which he hoped would be of a temporary nature, and its removal now would have been of great assistance to trade and industry, whilst proving of benefit to both the commercial and private sides of motoring.
We are not jealous at the 25 per cent. reduction in the horse-power tax for private cars. We consider that it has been long overdue, and it will help to increase our overseas trade ; the private motorist however. is not faced with the new burdens and expenses imposed upon the commercial user, not only in respect of increased taxation, but as a result of the operation of the Road and Rail Traffic Act.
The Commercial Motor Users Association re cently made special representations to the Chancellor urging the need for a reduction in the petrol tax; and great disappointment is being felt at its continuation at the present high rate. There is no doubt, however, that this will give an impetus to the move in the direction of the increasing use of oil engines and, in general, to fuels less heavily penalized ; it may even be that this move was in the mind of the Chancellor, although it is bound to be some little time before the use of alternative fuels materially affects the return from petrol.
There are a few minor points in the Budget which affect owners of business vehicles. There is a reduction in the rate of duty on motorcycles and those equipped with sidecars ; for example, the larger machines licensed after January 1, 1933, at present pay 23 per annum, which will be reduced to 22 5s., and for the right to attach a sjdecar or trailer the present duty of 21 will be reduced to 15s., thus diminishing the-total by 21 on a complete outfit. In addition, it is proposed to abolish, as from August 1, 1934, the fee of 10s. or -5s., as the case may be, for the surrender of a licence.
It is notable that the Road Fund, not the Exchequer, will bear most of the reduction, and provision is being made in the Finance Bill for the amount retained by the Exchequer, to be sub. ject to a minimum figure of 25,000,000.