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NEWS
AAA to government: Don't increase fuel excise
Peak motoring body reacts to media rumours the fuel excise will be increased in the federal budgetThe Australian Automobile Association (AAA) has responded with characteristic concern at speculation the federal government will raise the fuel excise payable by the Aussie motorist.
According to reports, the ABC has confirmed that the Treasurer Joe Hockey will announce a rise in the fuel excise on budget night – one of a raft of measures recommended by the Commission of Audit to reduce the government deficit.
"Any increase in fuel excise in this Budget would be unjustified," AAA Chief Executive Andrew McKellar was quoted saying in a press release.
"The government must be honest with motorists and confirm that there will be no increase in fuel tax," he said.
"Any increase would break the government's commitment to motorists, with no suggestion before the election that fuel tax would be increased.
"Motorists already pay too much tax and are not getting fair value for money with only a fraction of fuel excise being returned to spending on transport infrastructure by the Federal Government."
The fuel excise levy has been held at 38.1 cents since 2001, during the years of the Howard government, as a sop to the electorate already concerned by the then new GST. According to the ABC, a Queensland backbench MP, Ken O'Dowd, has spoken out against any increase to the levy, citing higher inflation as a likely outcome when transported goods inevitably rise in price to cover the higher levy.
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Written byCarsales Staff
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