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Crean misleads Parliament on GST and value-adding

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B ruce Lloyd itM edia

Deputy Leader, National Party of Australia ” J Ph: 06/2774193

Shadow Minister for Primary Industry C O M M O N W E A L T H * * * — Ρ Δ Ρ Ι Ι Δ Μ Ρ Κ Ι Τ Δ Ρ Î¥ I Ι Κ Ρ Δ Ρ Î¥

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National Party Deputy Leader and Shadow Minister for Primary Industry, Bruce Lloyd has accused Primary Industries Minister, Simon Crean of deliberately misleading Parliament by saying that the GST was a tax on value-adding.

Mr Lloyd said this statement by Mr Crean shows that he either has no idea how the GST would work or he was deliberately misleading the House.

"Mr Crean said that GST taxes every stage of value-adding but failed to explain that whatever is paid is refunded at every stage of the process except for the final consumer.

"He also failed to tell the House that the Government's current hidden indirect taxes add to the price of milk, bread, butter and the other necessities of life.

"For example while the dairy farmer producing the milk may not directly pay payroll tax, training levy, fuel excise and wholesale sales tax, he pays more for his inputs because the companies buys from must pay these taxes.

"The company which picks up the milk is subject to wholesale sales tax on the milk tanker and spare parts, including tyres. This company must also pay payroll tax and fuel excise.

"The companies supplying farm machinery, fertilisers, pesticides, fuel, oil, cleaning equipment etc all pay these taxes and the price of them is built into the price of the goods the farmer must buy.

"We have discovered that Labor's hidden indirect consumption taxes impact on a packet of butter more than 220 times before the purchaser buys it.

"The Coalition will remove all of these taxes and replace them with just one tax at the final point of consumption.

"It is the Government's taxes that are a tax on value-adding and the reason for the one million unemployed as we are unable to compete against overseas countries on both export and on the domestic market," Mr Lloyd said.

"Mr Crean should have known that the Government's own Treasury had estimated that the removal of fuel excise, payroll tax and wholesale sales tax would save farmers $1025 million or an average of $8000 each.

"On top of this, under GST when farmers go shopping, like other members of the community, they will no longer have to pay 30 per cent hidden tax on radios, TVs, photographic equipment and 20 per cent tax on toothpaste, wines, beers, soft drinks, toilet paper oils, business equipment, office

furniture, lawn mowers, safety razors, and blades etc etc.

The Coalition will remove all of these hidden taxes so that many of the household necessities will actually be much cheaper. end 25/11/92