XN000022-1978-06-07 — Page 26

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„EDNESDAY, JUNE 7, 1978.

UNOFFICIAL MEMBER ADVOCATES PROGRESSIVE

INCREASES IN TAXES ON LUXURY CARS

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UNOFFICIAL LEGISLATIVE COUNCILLOR, THE REV. THE HON. PATRICK MCGOVERN, PROPOSED TODAY THAT THE TAX ON MOTOR VEHICLES SHOULD BE PROGRESSIVELY INCREASED IN RESPECT OF MORE LUXURY CARS.

SPEAKING IN SUPPORT OF THE MOTOR VEHICLES (FIRST REGISTRATION TAX) (AMENDMENT) BILL 1978 AT ITS RESUMED DEBATE IN THE LEGISLATIVE COUNCIL, FR. MCGOVERN SAID THAT IN THE CONTEXT OF VEHICLE TAX IT WOULD BE BETTER IF THE DEGREE OF PROGRESSIVITY WERE GREATER IN THE HIGHER BRACKETS.

HE SUGGESTED THAT THE AMENDMENT WOULD BE BETTER IF IT CONTAINED A FIVE PER CENT INCREASE AS A FIRST OR SECOND STEP FOR NON-LUXURY CARS, AND THEN PROGRESSIVELY HIGHER PERCENTAGE INCREASES FOR EACH SUCCEEDING STEP, EVEN UP TO 100 PER CENT FOR THE TOP BRACKET.

+TO BE JUST UNDER SUCH A SYSTEM THERE SHOULD BE MORE CATEGORIES INTRODUCED, PERHAPS CORRESPONDING ROUGHLY WITH THE PRESENT EIGHT STEPS IN THE ANNUAL LICENCE FEE BASED ON CYLINDER CAPACITY, + FR. MCGOVERN SAID.

FR. MCGOVERN ALSO SUGGESTED THAT THE PRINCIPLE OF A GREATER DEGREE OF PROGRESSIVITY BE APPLIED ON ANNUAL LICENCE FEE.

+AS I POINTED OUT BEFORE, UNDER THE PRESENT SYSTEM THE OWNER OF A SMALL VEHICLE PAYS MORE PER CC THAN THE OWNER OF A LARGE VEHICLE. THIS SHOULD OBVIOUSLY BE REVERSED,+ FR. MCGOVERN SAID.

+TO WHAT DEGREE DEPENDS ON WHETHER POLICY IS TO RAISE MORE REVENUE OR TO ENCOURAGE THE USE OF SMALL CARS OR TO DISCOURAGE METAL MONSTERS, OR PERHAPS A BIT OF EACH, HE ADDED.

FR. MCGOVERN FURTHER POINTED OUT THAT EVEN IF THERE WERE NO PROGRESSION A FLAT RATE FOR ALL WOULD BE FAIRER TO THE SMALL CAR OWNER AND BRING MORE REVENUE FROM THE LUXURY CAR.

AS REGARDS TWO WHEELED VEHICLES, FR. MCGOVERN SAID THEY SHOULD BE TREATED SEPARATELY, PERHAPS DIVIDED INTO UTILITY AND HIGHER CLASSES TO DISCOURAGE" OVER-POWERED CYCLES WHICH MIGHT TEMPT THE OWNER TO INDULGE IN SPEEDING OR ILLEGAL RACING.

IN ALL OF THIS, PROVIDED THAT A REASONABLY SIZED CAR IS NOT CONSIDERED AS A LUXURY, THERE WOULD BE NO HARDSHIP FOR ANYONE EXCEPT THOSE WHO CAN AFFORD TO PAY FOR LUXURY, FR, MCGOVERN SAID.

THE BILL WAS LATER PASSED INTO LAW.

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