NatRoad are calling on state governments to consider the scrapping of Stamp Duty on Heavy Vehicle Registrations.
The calls come after the Grattan Institute recently found that stamp duty was a drag on the community and a bad tax from a transport business perspective.
Warren Clark is the CEO of NatRoad, he says the issue is one that needs to be addressed ASAP by government.
“Stamp duty should be abolished as it is an inefficient tax and is antiquated and out-of-step with a modern revenue system.
“There are unique and perverse reasons that heavy vehicles are already too expensive in this country than elsewhere in the world.
“For example, to meet current Australian regulations, heavy freight vehicles must be 50 to 100mm (2–4%) less in width than vehicles in other major markets.
“This costs truck manufacturers $15–30 million per year to redesign their vehicles, and in some cases reduces the availability of safer, cleaner models.”
And if the government won’t scrap Stamp Duty? Mr Clark say the government should cap it, or even reduce it.
“Alternatively, the stamp duty regime for heavy vehicles could be better designed to give incentives to purchase newer, safer vehicles, as is currently the case with the NSW exemption for registration of new heavy trailers.
“Reform might also mean that stamp duty raised from imposts on heavy vehicles could be allocated to infrastructure spending that would benefit the heavy vehicle industry like the improvement of bridges to allow high productivity vehicles better road access.
“Abolition of stamp duty or its radical overhaul must be a priority.”
- Related: NatRoad calls for Fuel Tax freeze
- Related: NatRoad calls for change to two-up fatigue law
- Related: Lawyers warn transporters may not be meeting new CoR regulations
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