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Dumped Carbon Tax Good News For Motorists

Dumped Carbon Tax Good News For Motorists

The AA has welcomed the government’s decision not to proceed with its proposed carbon tax.

The carbon tax would have collected $360 million annually. It was designed to reduce greenhouse gas emissions and set to come into effect in April 2007. The carbon tax was one of two future taxes on petrol planned by the government, and was expected to increase the cost of petrol by between three and five cents per litre.

AA spokesperson Simon Lambourne says “motorists will be very relieved the government has dumped the carbon tax. The AA has opposed the carbon tax since it was first mooted, believing motorists already pay their fair share through petrol excise.”

Motorists pay $1.2 billion annually (excluding GST) to the government in petrol excise. Approximately half of this goes into the general crown account. The AA will continue to oppose the government’s other intended petrol tax increase, which is inflation based and scheduled for introduction in April next year.

“We welcome the Transport Minister’s statement today that petrol prices have risen and the government must respond in a fair manner. A further increase in petrol excise next year will obviously needlessly hurt everyone’s budgets.”

The government’s efforts to improve the fuel efficiency of the transport fleet are supported by the AA.

“A fuel efficient fleet has considerable benefit for motorists - it means petrol cost savings, it’s better for the environment and makes driving a considerably more pleasurable experience,” says Mr Lambourne.

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