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Help families: Take GST off Fuel




Help families:  Take GST off Fuel


15 July 08 | Increases in transport prices made the most significant upward contribution to the Consumer Price Index (CPI) increase of 1.6 percent this quarter (the highest since the June 1990 quarter), in particular the increase in petrol.

Family Party leader Richard Lewis says families were struggling to keep on top of their household expenses because basic necessities were becoming increasingly out of reach.

“Families need fuel for their vehicles. They need healthy food on the table. We’re not talking about luxuries here. A family-friendly Government would alleviate the pressure by taking the GST component off basic necessities. When it comes to petrol, GST is effectively a tax on top of a tax, which is of itself inherently unfair, “ says Mr Lewis.

The Family Party released a policy in May to remove GST off fuel.

“Removing GST off fuel would provide relief at the pump to all levels of household income, including beneficiaries,” he added.

Transport prices increased 4.9 percent in the June 2008 quarter, with the main contribution coming from increases in petrol prices (up 12.8 percent). Other significant contributions came from diesel, domestic air transport, and international air transport.

Higher prices for petrol (up 25.9 percent) made the most significant individual contribution to the increase in the CPI for the year to June 2008.




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