News

AAA Renews Call For Government To Review Petrol Tax

24.1.2001

With the announcement that petrol prices will rise in February by almost 2 cents/litre following the release today of the December quarter CPI, AAA is calling on the Government to review its stance on the indexation of petrol excise.

 

"The latest increase in petrol tax is just another unnecessary burden which motorists have to face" said Lauchlan McIntosh "and it comes at a time when oil prices are still hovering around US$30/barrel."

 

Mr McIntosh also reminded the Government that the latest excise increase will be subject to the 10% GST which means that the Government is imposing a tax on a tax. Indexation of taxes is inflationary and the tax on a tax is highly regressive", he said.

 

The increase comes on top of a 0.7 cents/litre increase in August.

 

According to AAA, the GST on the tax increase in August, together with the GST on the latest increase, plus an amount due to inflationary spike caused by the GST will have added over 1 cent/litre to the price of petrol.

 

"The Government promised not to increase petrol prices because of the GST, but we now find they have gone up by 1.5 cents/litre in July because of the transition to the GST and a further 1 cent because of the effects of the GST", said Mr McIntosh.

 

"We would like the Government to re consider its position and provide some relief to motorists" said Mr McIntosh. "They are hurting, as evidenced in part by the latest AAA survey which showed that 30% of motorists use supermarket dockets to obtain petrol discounts of 1 and 2 cents/litre", he said.

 

"And in the longer term, we would like to see a complete review of the way motorists are taxed and charged for the use of the road network" said Mr McIntosh "The current arrangements are totally unsatisfactory" he added.

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