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Labor backflips on yet another tax.

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The Hon Warren Truss MP Leader of the Nationals Shadow Minister for Infrastructure, Transport and Local Government

Barely a fortnight after the release of its high-taxing Budget, Labor has been forced to fix another tax blunder - this time on the increase in the passenger movement charge.

''In the Budget, Rudd Labor lifted the Passenger Movement Charge from $38 to $47 from July 1, a tax which hits everyone entering or leaving Australia,'' said Nationals Leader and Shadow Transport Minister, Warren Truss.

''This tax slug will raise nearly half a billion dollars over the next four years. It is a tax that has been condemned by the tourism industry, which is already reeling from higher fuel costs and the higher Australian dollar.

''In its haste to belt more people with more taxes, Labor blundered by imposing the charge also on all tickets pre-sold to passengers who intend travelling after July 1.

''These tickets were sold by the airlines in good faith at a price that included the old tax of $38. The Rudd Government failed to provide an exemption for these tickets, resulting in an incredibly messy situation where airlines would have to foot the extra cost or hit passengers at the airports for another $9 each.

''This hasty tax grab occurred as a result of Labor's arrogant failure to consult and its administrative incompetence.

''It has now backflipped on this oversight after Coalition and industry pressure, and tickets sold prior to 1 July for use after this time will be exempt from paying the extra tax.

''Of course the new tax will remain in place for all tickets sold after 1 July this year and Australia's tourism industry will continue to wear the pain imposed by a Government making it up as it goes along.

''So much for Rudd Labor's lofty promises of long term economic planning - this one didn't even last until the end of the month,'' Mr Truss said.