FUEL TAX TO SLUG GIPPSLAND DRIVERS AT THE BOWSER
June 16, 2011
Motorists using Liquified Petroleum Gas (LPG) will be stung an extra 12.5 cents per litre over the next five years in the latest Gillard Government tax increase.
Federal Member for Gippsland Darren Chester has spoken out against the LPG excise in Federal Parliament highlighting its impact on the cost of living to motorists in regional areas. Mr Chester told Parliament that the excise was purely a tax grab and was inconsistent with efforts to protect the environment.
“This is a tax grab, pure and simple, and the government should not pretend otherwise. It will have a direct impact on the cost of living, particularly in regional areas,” Mr Chester told Parliament.
“The hypocrisy in making an alternative, cleaner fuel more expensive and less attractive for people to use is obvious for all to see.”
Mr Chester said the excise would add to public transport costs, given the high reliance on LPG among Victoria’s taxi fleet.
“There is no question that the impact on the wider community will be felt whether they have an LPG powered vehicle or not,” Mr Chester said.
“It makes no sense to be applying this tax…at a time when Australian families are struggling with an increased cost of living.”
Mr Chester raised the highly successful LPG Vehicle Scheme to demonstrate the impact the new excise would have on Gippsland motorists.
The LPG Vehicle Scheme provides grants for the LPG conversion of a registered motor vehicle or the purchase of a new vehicle fitted with LPG prior to first registration, subject to eligibility criteria. At April 30 this year a total of 135,500 Victorian vehicles had been fitted to run on LPG under the scheme.
Mr Chester said the LPG Vehicle Scheme had been extremely popular in regional areas because local communities were faced with a high cost of personal transportation.
“Even after Labor cut the incentives for the fuel conversion program, it still proved popular,” Mr Chester said.
“The people of Gippsland have been some of the heaviest users of the grants program. They are doing everything they possibly can to reduce their household bills.
“The average vehicle in a regional area will travel further each year and motorists have the opportunity to recoup the conversion cost in a far shorter time.
“Under this exercise, the government is sending a very mixed message to the broader community. The scheme will no longer be seen as attractive because recouping the value of conversions obviously takes longer.
“Motorists will see this as just the beginning. They know that, whenever Labor need more taxes, they will be going back to the Australian people. They will have their hands in the pockets of the motorists of Australia and the LPG excise will only increase in the future.”
