The Australian Automobile Dealers Association (AADA) is disappointed by the Treasurer’s announcement yesterday that the Luxury Car Tax (LCT) will be increased.

The LCT is an inherently unfair and discriminatory tax. Motor Vehicles are the only good subject to a ‘luxury’ tax; will the Government now introduce taxes on jewelry, boats and antiques?

AADA considers that LCT has no place in a fair taxation system which taxes goods and services across the board at a standard rate. As such AADA calls on the Government to end this discriminatory tax.

All consumers, including ‘working families’ are slugged with multiple taxes simply for owning a motor vehicle; these taxes include registration, fuel excise and GST. They should not be further taxed for purchasing additional factory options (such as extra airbags and electronic stability control) and other accessories (such as tow bars, roof racks and alarm upgrades).

Successive Government’s have failed to recognise that Treasury’s definition of a ‘luxury’ vehicle captures many family vehicles. Given the Government’s preference for a newer, safer and more fuel efficient national vehicle fleet, shouldn’t consumers be encouraged to purchase new vehicles with increased safety and environmental benefits?

AADA condemns the Government’s decision to increase the LCT. This discriminatory tax must be removed.

Courtesy: Motor Traders Association of Australia

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Posted by Jigar Gondalia on 24 May, 2008 11:53:49 AM IST #