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Senators Urged to Reject Tax Hike - Again

The peak body representing the Australian car industry, the Federal Chamber of Automotive Industries (FCAI), has urged the Senate to again reject the proposed increase in the luxury car tax.

"The proposed tax hike is bad policy and will cause significant harm to the Australian automotive industry," FCAI Chief Executive Andrew McKellar said.

"It is deeply flawed legislation and it cannot be improved through amendments, no matter how well-intentioned," he said.

"There is already clear evidence of the damage that this tax hike is having on the industry and it will cause further harm if it goes ahead," Mr McKellar said.

"The car industry should not be used as a political football in this debate," he said.

"There are real people with real jobs whose livelihoods are being affected by this tax hike," Mr McKellar said.

"The car industry calls on the Federal Government to withdraw the legislation and to undertake a comprehensive review of the taxation of motor vehicles as part of the review of Australia's future tax system being conducted by Treasury Secretary, Ken Henry," he said.

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