THE REMITTED TAX ON BENZOLE.
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Intended to Encourage the Establishment ot a Distribution System.
THE PRODUCER of benzole enjoys this advantage over the importer and distrkuter of petrol that, at the present moment, he is relieved from the initial tax, chargeable at the source, of 6d. per gallon (subject to rebate on motor spirit used for commercial vehicle purposes). It was announced a short time ago that the Government did not intend to charge this tax, the stated purpose being that the production of a home-produced spirit should be encour aged ; but it now is made clearer that the tax is being remitted in order to encourage the benzole producers to establish their own distribution organization. The establishment of this organization is the only ground which is likely to count with the Government for the continued exemption of benzole from the motor spirit duty, and unless this organization is provided we fear that this ground will disappear. If the benzoic producers consider that they meet the circumstances by selling their output through the oil companies, thus availing themselves of an independently-owned distribution organization, they may, in our opinion, expect to see the motor spirit duty imposed on benzole ; presumably, however, if the bensole producers were to.purchase an existing distribution organization, which would, in some senses. be better than merely building one up, they could still hope for the continuance of the exemption. We are satisfied that, accordinq to figures which have been divulged from time to time, the remission which, taking private and commercial vehicles, must
c34 average about 41d. per gallon, is about sufficient to cover the cost of distribution.
The issue, therefore, is clear so far as the benzole producers are concerned, but we are not satisfied that the whole case for the continued exemption of benzoic from the motor spirit duty merely concerns the benzole producers. We can quite , understand that there would be both State and -public abjection to such a subsidy going wholly into their pockets, and yet we feel that, after a distribution organization has been provided, the tax should not be imposed, the grounds being those' of the development of a homeproduced fuel supply. We are told that the producers of shale spirit will claim the same consideration, and, if they do, we want to know why they should not
During the war the prices of all kinds of foods and commodities have been driven up owing to want of transport, which want has been due to petrol restrictions. Surely it is unreasonable to imagine that the Government has learned nothing from these happenings and their supervening consequences.
Cheap fuel is an absolute essential for motor trampert; motor transport is an absolute essential for the rapid recovery of industry throughout the country and the rapid resettlement of labour. Transport, in fact, is vital! There is, therefore' every reason why. a proved source of home-produced fuel -should be developed to its fullest extent so that the ideal of motor fuel at, or about, is. per gallon should be attainable.