Luxury car tax to stay as Holden falls

Treasurer Josh Frydenberg is standing firm, resisting pressure from colleagues to phase out the government's luxury car tax - imposed on imported vehicles valued above $67,000. A group of Liberal MPs have been publicly making the case to the treasurer, in the wake of Holden’s demise. Liberal Senator James Paterson told Sky News it should be “the ambition over the medium term, when the budget is hopefully in a stronger state, that we can remove these taxes and deliver cheaper cars and a better choice for Australians”. The tax was implemented by the Howard government as a way of propping up the domestic automotive industry. The tax generated more than $670 million annually to the budget bottom line. Image: News Corp Australia Via news.com.au — Australia’s #1 news site https://www.news.com.au