Automotive industry shouldn't be singled-out with 'luxury tax' | Sky News Australia

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Motor Trades Association of Australia Chief Executive Richard Dudley says “the time has come to actually have a discussion about what an alternative might look like” to the luxury car tax.

Treasurer Josh Frydenberg rejected calls to remove the luxury car ban imposed on imported cars valued over $67,000 in the wake of Holden’s demise. Mr Dudley told Sky News “if the government is not willing to look at its complete abolition” they should embrace a “four ‘R’ strategy” which would include measures such as raising “the threshold to something that is more meaningful and truly luxury-orientated”.

He said they should “come up with something that allows the government to have the revenue it requires to have its surplus given the other pressures it is having at the moment”. The threshold is “currently 33 per cent and we consider that to be too high,” he said. “Some of that revenue could be offset by the inclusion of other actual luxury items which most Australians would regard as luxurious.

 

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How about abolishing import laws too. Give consumers a choice.

Most EVs are subject to LCT. Abolishing it would be a big help making them being a better economic as well as an environmental proposition.

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