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Greens offer Govt luxury car tax lifeline

Posted August 29, 2008 00:36:00
Updated August 29, 2008 00:35:00

The Greens have offered a compromise to the Government on car taxes, the first sign of the dealing required to get bills through the new Senate.

The Opposition confirmed on Thursday it will vote against the bill to increase the tax on cars costing more than $57,000 leaving the Government no option but to try and negotiate a deal with the minor parties in the Senate.

Greens Senator Christine Milne has proposed the Treasurer phase out the luxury car tax altogether and bring in one - a vehicle fuel inefficiency tax to raise the budget revenue.

"The Government needs to be consistent if it wants to be a leader on climate change, if it wants to reduce dependence on foreign oil," he said.

"If it wants to build competitive advantage in Australian car manufacturing for green cars, then the best way of doing it is to look at the vehicle fuel efficiency of our fleet and make sure the tax system drives the right outcome."

Tags: government-and-politics, federal-government, political-parties, greens, tax, australia

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