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LOCAL COUNCILS WANT HIGHER TAXATION.

29th August 1922
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Page 2, 29th August 1922 — LOCAL COUNCILS WANT HIGHER TAXATION.
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Which of the following most accurately describes the problem?

AT its annual meeting at the Guildhall, London, last month, the Rural District Councils' Asso ciation authorized the executive to appoint a special committee to consider the letter from the Departmental Committee of the Ministry of Transport on the taxation of motor vehicles. This committee: has since been appointed and has met to

consider tho matter. '

The Interim. Report of the Departmental Committee on Taxation and Regulation of Road Vehicles in Great Britain and Ireland, and the scale of duties prescribed for mechanically propelled vehicles by the Second Schedule to the Finance Act, 1920, which in effect carried out the Report of the Departmental Committee, together with the letter of the Depart

B18 mental Committee, and also proposals in the niatter to the Association were discussed at great length at a meeting of the special committee, and eventually the following resolutions were adopted (1) Owing to the difficulty of discriminating between the uses of fuel and the difficulty of rebates, the committee is unable to recommend a return to the petrol tax, but the committee desires to make various recommendations as to the revenue to be raised and the incidence of taxation between the various classes of vehicles and the provisions of regulations as regards user of roads.

(2) That no alteration be suggested in the scale of duties prescribed in regard to (1) cycles, and () vehicles not exceeding 5 cwt. in weight. (3) That, with a view of adapting the taxation in proportion to the damage done to the roads, the committee recommends— (a) That the. duties prescribed in regard to• vehicles being. hackney' carriages as defined in Section 4 of the Customs and Inland Revenue Act. 1888 (other tharriramears), capable of seating more than six :perso-ns,. should be increased by 331 per cent.

• .(b) That the scale of: duties prescribed in respect of vehicles constructed.or adapted for use and used solely for the conveyance of goods in the course of 'trade,and exceeding. 2 tons in weight unladen, shouldloci increased by 33-i per cent. (c) That the existing additional duty of £2 if any of the last-mentioned vehicles be used fog drawing a trailer should be increased to 210 in the case of a trailer exceeding 1 ton in weight. (d) That the duty of £10 prescribed j4 respect of tractors exceeding 5 tons weight unladen should also be increased by 331per cent. The committee realizes that, if the rates were increased in the manner suggested by it, the result would be to produce a greater revenue than that derived from the existing taxes prescribed by the Second Schedule. to the Finance Act, 1920, but it considers that, owing to the increasing aemands of the public for repair. and improvement of roads, more money is required for grants, particularly in respect of the second-class roads.


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