News

AAA Rejects Call for Excise Increase

18.8.2009

The Australian Automobile Association (AAA), Australia’s peak motoring body, today rejected calls for an increase in petrol excise as part of a broad proposal to the Henry Tax Review to introduce road user charges.

AAA Chief Executive, Mike Harris, said the proposal before the Henry Review is nothing more than a revenue-raising exercise which uses the private motorists as a cash cow to generate tax revenue – prepared by academics and ignoring the current high costs of motoring.

“To make matters worse, this “Ivory Tower” report then suggests that motorists should be charged again on the basis of their use of the road network,” Mr Harris said.

“Motorists already pay more than their fair share of taxes and charges, including excise which sees only one third going back into the road network – and two thirds going to pay for other government services.

 “The suggestion to increase excise as a source of revenue and introduce a road user charge system as well, which is contained in a consultant’s report commissioned as part of the Henry Review, is an insult to the community and makes public discussion of a sensible charging regime more difficult.

“Motorists are rightly angry when academics suggest they should be taxed at even higher rates.”

“The Henry Tax Review is meant to be about a fair tax regime, and this grossly unfair tax proposal should be rejected by the Government.”

“AAA supports a proper user pays approach to paying for our road networks, similar to that used for other utilities such as electricity and water – but the underlying prerequisite is the abolition of the fuel excise.”

 

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