The Federal Chamber of Automotive Industries (FCAI) today commented on the New South Wales Labor party's proposal to increase taxation on vehicles over $100,000 to seven per cent.
"It's a tax on a tax," said Tony Weber, Chief Executive of the FCAI.
"And worse - it's a tax on technology and safety, putting Australian consumers at a disadvantage when they are unable to access these important innovations.
"The Luxury Car Tax, which is levied on vehicles over $66,331, was originally implemented to protect the local manufacturing industry, which closed in 2017. It has become redundant in the Australian automotive market and the time has come to cease the charade that this is a justifiable, sensible or even a necessary tax.
“Current discussions in industry centre around a considered withdrawal from the Luxury Car Tax. The suggestion that it should be extended is completely counter-productive and frankly, beyond belief," Mr Weber concluded.
For more information, contact:
Director, Communications and Emerging Technologies
0408 320 797