Coalition group fights for fuel tax credits scheme

Posted March 18, 2015

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A group of industry members from the resources, agriculture, tourism, fishing and forestry sectors have come together to put forward a case for the fuel tax credits scheme, also commonly known as the diesel fuel rebate.

The group known as the Fuel Tax Credits Coalition released a new publication, Powering Regional Australia: The Case for Fuel Tax Credits, designed to promote a balanced and informed debate on the purpose and impact of the FTCS.

The publication argues that the fuel excise introduced to contribute to the cost of building public roads should not apply to diesel used off-road or in off-grid power generation. It also argues that the tax provisions are founded on a fundamental principle of sound tax policy, namely taxes on intermediate business inputs are inefficient and distortionary.

The report highlights 18 case studies drawn from 18 different businesses and communities – small, medium and large – from all states and the Northern Territory.

“We welcome the fact that the FTCS enjoys strong backing from both major political parties.  This report is designed to ensure that the false claims made by the Greens and some environmental activists gain no traction,”Minerals Council of Australia chief executive, Brendan Pearson said.

Read the full report here.

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