FED: Coalition to oppose 'punitive' luxury car tax in Senate=2

AAP General News (Australia)
08-28-2008
FED: Coalition to oppose 'punitive' luxury car tax in Senate=2

Senator Abetz says 70 per cent of cars subject to the luxury car tax are sold for less
than $75,000.

"They are not the cars of millionaires," he said.

"The highest selling so-called luxury car is the Toyota Landcruiser, which retails
for around $70,000, and are driven primarily by those in rural and regional Australia
and those with the need for a people mover."

Industry Minister Kim Carr yesterday said if the coalition blocked the government's
proposal it would add to the size of the hole it was blowing in the budget.

"The opposition has decided to stand up for lower taxes on luxury cars rather than
for lower interest rates for working families," Senator Carr said.

The Australian Greens have said they will oppose the bill unless it is changed to slug
only fuel-guzzling vehicles.

Greens Leader Bob Brown has questioned the sense in making new car buyers pay more
for fuel efficient cars.

Fellow balance of power senators Steve Fielding and Nick Xenophon have also expressed
concern about the tax hike.

AAP jcd/rl/jt/bwl

KEYWORD: CARS 2 CANBERRA

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