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NETC vindicates fightback



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M edia N ews έ ο ε κ α ε m e m b e r f o r Wa n n o n David H awker, MP

s h a d o w M i n i s t e r f o r l a n d t r a n s p o r t

NRTC VINDTCATES FIGHTRAOK

The release of the National Road Transport Commission's (NRTC) discussion paper on heavy vehicles vindicates the position taken by the Coalition in Fightbackl. ■ ·""

The NRTC, an independent body, reinforces the Coalition’s view that the road transport industry Is overtaxed. This follows calls by the Coalition and industry that the NRTC must take account of the current input taxes and charges on road transport.

In a slap in the face to the Government it states "sales tax paid by the road transport industry is excessive". This emphasises the contrast between the Coalition and Labor. Clearly Labor’s overtaxing of road transport is a significant hindrance to road transport reform and improving efficiency.

The NRTC, to its credit and in spite of the Government, recognised the need to review tax levels. It found that the road transport industry, on average, paid between $1,500 and $3,000 per truck per year in excess of the average taxation impost on other industry.

The Coalition recognised this years ago, and through Fightbackl has aimed at dramatically reducing the tax paid by such an important industry.

The Commission found that "High levels of taxation on the road transport industry are of concern because transport is an "intermediate good" used in the production of so many other goods in the economy. Taxation of intermediate goods does not support the Commission's major objective of improved

efficiency".

This is exactly the point the Coalition has addressed in Fightbackl By abolishing all input taxes paid by the road transport industry, including fuel tax, sales tax, import duties and payroll tax, the Coalition believes, and is supported in this belief by the NRTC, th at efficiency will be improved and

transport costs will fall.

T COMMONWEALTH P A R U A M E N ^ L IB R A R Y ^

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This means that the price of just about everything we buy will be reduced. That is why the impact of the GST will be 15% as the Government says but only about 4.4%.

Labor will now have to completely rethink its Road Transport policy. The pressure is on to remove sales tax on intermediate goods. In practice the most efficient way to achieve this is through a GST,

The Commission also vindicates the concerns the Coalition has repeatedly raised about the effects of increased road user charges on remote areas.

The Commission also shows its concern that the Government will not return the revenue raised from road user charges to the roads, by not recommending a fuel-only charge.

The Coalition has also expressed concern since no one on the Government side has said that the revenue will be returned to roads.

The Coalition has, on the other hand, committed itself to returning all revenue raised from road user charges to the roads.

ends.

14 April, 1992

Contact: David Hawker Janice Wykee (055) 721100 (06) 2774231 or (06) 288 3946