The Australian Chambers of Commerce and Industry (ACCI) has issued a call to action for the government, urging a reduction in the tax levied on transport fuel from its current rate of 32.4 cents per litre. This move, they argue, would provide much-needed relief to transport businesses and independent operators struggling with rising costs.
According to the ACCI, this tax currently generates $3 billion in revenue annually. However, they believe that lowering it could prevent more severe financial consequences at a time when Australians are grappling with high petrol prices.
Andrew McKellar from the ACCI emphasized the potential benefits at a press conference, stating, “Reducing this tax will help manage supply chain costs. It will also serve to cushion the blow on food and grocery prices, thereby mitigating inflationary pressures.”
McKellar drew comparisons with the broader fuel excise, a reduction of which has been proposed by the federal opposition. He argued that cutting the heavy vehicle charge is a more strategic approach, one that would yield a significant impact without contributing to inflation.
“Unlike an immediate cut in the fuel excise, this measure doesn’t create artificial signals,” McKellar explained. “Instead, it offers a more direct and effective solution to the current petrol predicament.”
“It’s something that doesn’t send an artificial signal, such as what an immediate reduction in the fuel excise would do,” he said.
“It doesn’t encourage artificially higher demand.
“We want to minimise the adverse economic impact.”
It comes as the ACCI urged the government to implement a four-point plan to address the fuel crisis, which has pushed up prices and left pumps to run dry across Australia.
This includes securing the supply of petrol by working with allies in the Gulf region, and working with distributors to get fuel out to all Australians quicker.
They have also called on the government to manage demand, not ruling out measures such as fuel rationing, as well as ensuring businesses can survive the price surges; the reduction to the heavy vehicle charge is part of this.
“Efforts must be stepped up to ensure Australian businesses come through this crisis in the best shape possible,” McKellar said.
He clarified Australia was still not at the point of needing to ration fuel, but highlighted a scenario that might make it possible.
“If we are seeing material shortages, difficulty in securing those international supplies,” he said.
“It could be several months before we get to that point, if that starts to happen.”
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