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NEWS
Toyota denounces "discriminatory" LCT
Top selling brand calls for Luxury Car Tax to be retired, in line with Henry Review recommendationThe Australian Taxation Office's decision to raise the threshold for the Luxury Car Tax (LCT) has incited Toyota to demand the federal government abolish the impost.
Describing the LCT as "discriminatory" and "inefficient" Toyota has gone on the attack once again, with the company's executive director for sales and marketing, Tony Cramb, noting that the government does not apply a tax to other 'luxury' goods – antiques, yachts, motor boats and jewellery.
"Australian motorists are already heavily taxed with GST, stamp duty and registration fees when buying a new car, as well as road tolls and a hefty tax on fuel," Cramb was quoted saying in a press release issued this week.
"New-vehicle buyers should not be singled out to pay the additional burden of a so-called luxury tax – especially one that is so inefficient and poorly designed."
"The punitive tax rate was originally 25 per cent on the value of the vehicle above the threshold, but was increased to 33 per cent in 2008.
"Application of the tax does not recognise that many vehicles in this category offer important safety, environmental and theft-reduction benefits. The tax also results in significant compliance costs that are borne by our dealers.
"Toyota's opposition to this tax and our call for its repeal is consistent with the recommendations of the Henry tax review," Cramb concluded.
Toyota buyers have been over-represented paying LCT for their large, high-priced SUVs, which cannot take advantage of the Green's dispensation for fuel-efficient cars priced between the new threshold ($61,884) and the ceiling of $75,375. And since the company's announcement it will cease building cars in Australia from 2017, chances are strong its demands for the LCT to be abolished will grow louder over time.
At least the higher tax threshold has provided cause for lowering some of Toyota's new car prices. The company advises that 19 variants of 200 Series LandCruiser, Prado, Kluger and Tarago have dropped in price; all bar two have come down by the maximum amount of $470.
New prices are as follows:
Kluger
2WD Grande auto – $63,520 (-$470)
AWD Grande auto – $67,520 (-$470)
Prado
GX Auto T/D 7 seat – $60,988 (-$202)
GXL Manual T/D – $61,219 (-$271)
GXL Auto petrol – $62,720 (-$470)
GXL Auto T/D – $63,720 (-$470)
VX Auto petrol – $77,520 (-$470)
VX Auto T/D – $78,520 (-$470)
Kakadu Auto petrol – $91,120 (-$470)
Kakadu Auto T/D – $92,120 (-$470)
LandCruiser 200
GX Auto T/D – $78,165 (-$470)
GXL Auto petrol – $84,165 (-$470)
GXL Auto T/D – $89,165 (-$470)
VX Auto petrol – $95,165 (-$470)
VX Auto T/D – $100,165 (-$470)
Sahara Auto petrol – $114,165 (-$470)
Sahara Auto T/D – $119,165 (-$470)
Tarago
Ultima Auto V6 – $70,665 (-$470)
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Written byCarsales Staff
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