Calls for Government to review entire fuel tax system
Bill Woods speaks with Dr Lurion De Mello, Senior Lecturer, Department of Applied Finance at Macquarie University’s Business School, who says while higher petrol prices are looming on the horizon, the Federal Government should use this as an opportunity to review the entire fuel tax system.
Australian motorists might be bracing for an increase in prices at the petrol pump as the temporary halt to the fuel excise comes to an end on 28 September, but it’s also a chance for the Federal Government to usher in a new era of cleaner fuel and lower taxes.
“We need better tax incentives to encourage the use of cleaner fuels like the octane 95 and 98. The 91 fuels should be discouraged with higher taxes and then eventually phased out as they have been in Europe”, say Dr De Mello.
“The federal government should focus on natural gas as a transportation fuel, particularly for trucks and buses. We need a roadmap to move away from the highly polluting diesel. Australia also needs to get on top of sovereign capability when it comes to fuel supplies and defence capabilities. A good tax and incentive scheme will get us there.”
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