Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
$4 billion GDP boost with GST should be added to $1.7 billion boost from tariffs cuts



Download PDFDownload PDF

Peter Reith

DEPUTY LEADER of the OPPOSITION PRESS RELEASE SHADOW TREASURER

$4 BILLION GDP BOOST WITH GST SHOULD BE ADDED TO $1.7 BILLION BOOST FROM TARIFFS CUTS

There are massive gains to national production to be realised if only the Government had the courage to abolish the sales tax system and introduce an efficient and fairer goods and services tax.

The GST would boost national output bv up to S4 billion.

That compares with the over SI.7 billion that the March Statement estimates gross domestic product will increase bv following the Government * s tariff reductions. (see page 5.20) This latter figure is calculated by the Industry Commission using its ORANI

economic model.

As reported in the Australian newspaper on 15 January 1991 an analysis commissioned by the Business Council of Australia using the same ORANI economic model, has shown that a goods and

services tax in the place of the sales tax system would increase gross domestic product by 0.5 to 1 per cent or by $2 billion to $4 billion.

There is a lot of reform that the Government still could achieve.

CANBERRA

13 MARCH 1991 CONTACT: DAVID TURNBULL, 06 277 4045

D30/91

COiviMO; i WEALTH P A R L IA M E N T A R Y LSaRARY M!CAH