Australia no longer builds cars but drivers still fork out big dollars for prestige vehicles because of the luxury car tax.

The Liberal Democrats support the motoring peak body Federal Chamber of Automotive Industries to call for the abolition of the luxury car tax.

Liberal Democrats NSW President, Dean McCrae, says the tax is simply a government grab for money that is not justified.

“Australia had a great reputation for motoring and we proudly built Fords and Holdens because our industry was protected from competitors,” says Dean.

“But now a massive 33 per cent luxury car tax is sheer government gluttony because it makes higher quality cars too expensive.

“It’s not in the spirit of a healthy free market economy to keep the price of non-luxury cars and performance vehicles artificially inflated for no legitimate reason.

“If the government won’t abolish the tax, we need to bring back car manufacturing to justify it.

“There are plenty of skilled people in regional areas to revitalise car manufacturing, which could mean we build iconic luxury brands.

“We need to be smarter as a country to compete with Asian countries for their manufacturing business,” Dean says.

The Liberal Democrats argue that removing the tax means Australians could afford better quality and safer cars.

For more information about the Liberal Democrats stand on the motoring industry and taxes, browse to policies on Free Trade and support for motorists Taxation, and Low, Flat Taxes.

Photo Credit:
ID#1169930554 (iStock.com/Vu Viet Dung)

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