A coalition of Tasmanian business groups has joined forces to call on the Federal Government to urgently reduce the fuel excise.
The coalition is calling for the fuel excise to be at a minimum halved, for a period of three months.
“There is no question that Tasmanian business and households are being impacted by the increase in fuel prices,” TCCI Acting CEO Colleen Reardon said.
“The increasing fuel price is placing pressure through the supply chain and on our local economy. There would not be a single industry sector which isn’t affected.”
Ms Reardon said that it was estimated that halving the fuel excise (currently 52.6 cents per litre) for three months would cost the Federal Government around $2 billion in forgone revenue.
“We understand that this is a significant amount of money by any measure, however, it is well worth doing given the widespread community and business pressures that fuel increases are causing,” she said.
“It is also worth noting that State Governments are currently receiving a windfall gain from increased fuel prices through the GST on petrol and diesel sales.”
Ms Reardon said corresponding reductions must be put in place to ensure that truck and freight operators were able to fully benefit from any excise reduction because of complications from the Fuel Tax Credit and Road User Charge schemes.
Coalition members are:
Civil Contractors Federation Tasmania
Tasmanian Forest Products Association
Tasmanian Small Business Council
Housing Industry Association, Tasmania
Tourism Industry Council Tasmania
Clean Energy Tasmania
Business North West
Tasmanian Automotive Chamber of Commerce
National Electrical and Communications Association, Tasmania
Tasmanian Minerals, Manufacturing and Energy Council
Master Plumbers Association Tasmania
Salmon Tasmania
Launceston Chamber of Commerce
Devonport Chamber of Commerce and Industry
Business Greater Hobart
Master Builders Tasmania
Media Contact:
Colleen Reardon, Acting CEO, TCCI
03 6236 3600