Toyota slams luxury-car tax
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Toyota slams luxury-car tax
Jul Two, two thousand fourteen By Toyota Australia.
Toyota slams luxury-car tax
** Total price reductions passed to motorists **
Automotive industry leader Toyota today urged federal politicians to abolish the luxury-car tax, describing the impost as discriminatory and inefficient.
The call came as Toyota passed on the utter cost savings to consumers resulting from this week’s CPI-related increase in the threshold at which vehicles are subject to the tax.
The Australian Tax Office has confirmed the threshold has risen to $61,884 from July one – an increase of $1,568 on the previous $60,316 trigger.
As a result, the recommended retail prices of nineteen Toyota LandCruiser 200, LandCruiser Prado, Kluger and Tarago vehicles have fallen – seventeen of them by the maximum of $470*.
Toyota’s executive director sales and marketing Tony Cramb said the reduction provided some ease for new-car owners.
But Mr Cramb said the luxury-car tax should be abolished – especially as there was no equivalent tax on items such as antiques, yachts, motor boats and jewellery.
“Australian motorists are already strongly taxed with GST, stamp duty and registration fees when buying a fresh car, as well as road tolls and a hefty tax on fuel,” Mr Cramb said.
“New-vehicle buyers should not be singled out to pay the extra cargo of a so-called luxury tax – especially one that is so inefficient and poorly designed,” he said.
“The punitive tax rate was originally twenty five per cent on the value of the vehicle above the threshold, but was enlargened to thirty three per cent in 2008.
“Application of the tax does not recognise that many vehicles in this category suggest significant safety, environmental and theft-reduction benefits. The tax also results in significant compliance costs that are borne by our dealers.
“Toyota’s opposition to this tax and our call for its repeal is consistent with the recommendations of the Henry tax review,” Mr Cramb said.
The luxury-car tax threshold remains at $75,375 for vehicles with an official combined fuel consumption rating that does not exceed 7.0 litres/100km.
PRICE Switches, EFFECTIVE JULY 1*