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One Nation's tax plan would increase beer, cigs & petrol



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The Hon. Warren Truss, MR Minister for Customs and Consumer Affairs Deputy Leader of the House

MEDIA RELEASE

4 September, 1998

ONE NATION’S TAX PLAN WOULD INCREASE BEER, CIGS & PETROL

While several commentators have roundly criticised One Nation’s silly 2 per cent cascading tax proposal, as Customs Minister, I would also like to point to a particular folly of this proposal.

On A Current Affair last night Pauline Hanson was asked about the effect on Government revenue, which would fall dramatically under such a tax system. Ms Hanson said revenue would not fall because excise and tariffs would provide $48 billion.

The Australian Customs Service collects excise and tariffs.

The current annual collection of Government revenue from these sources is:

EXCISE $18 BILLION

TARIFFS $3.7 BILLION

To collect $48 billion from excise and tariffs under the One Nation tax plan Pauline Hanson would need to collect an extra $26.3 billion.

One Nation’s proposal would therefore mean the cost of a beer and a packet of cigarettes would need to treble, or the price of petrol and diesel would need to increase by more than $1 a litre.

And that is before a 2% cascading tax is added.

Contact: Ref: CMR

Andrew Hall — Media Adviser — 02 6277 7790 0419 996 766 Email: ahall@dist.gov.au Websites: w w w .d is t.g o v .a u w w w .c u s to m s .g o v .a u