The Tasmanian Chamber of Commerce and Industry has backed in calls for the Federal Government to temporarily reduce the fuel excise.
“Tasmanian households and businesses are being smashed by the massive increase in fuel prices”, said Colleen Reardon, TCCI Acting CEO.
“Currently the fuel excise is 52.6 cents per litre, to halve the excise for three months for example would cost around $2 billion in foregone revenue.
“This is a significant amount of money by any measure; however, in our view it is well worth considering given the massive inflationary pressures that fuel increases are causing, right through the economy.
“It is also worth noting that State Governments were currently receiving a windfall gain from increased fuel prices through the GST on petrol and diesel sales.”
Ms Reardon added that it would be necessary to ensure that corresponding reductions are put in place to ensure that truck and freight operators were able to fully benefit from any excise reduction, due to complications from the Fuel Tax Credit and Road User Charge schemes.
The fuel excise was last temporarily reduced in 2022 in response to high oil prices at the time caused by the Russian invasion of Ukraine.
Media Contact:
Colleen Reardon, Acting CEO, TCCI
03 6236 3600