Motoring group NRMA is outraged at the federal government’s planned November 10 Fuel Excise, labelling it a petrol tax money-grab.

Finance Minister, Mathias Cormann, argued through social media that the excise was necessary to make up for the shortfall in the value of tax after inflation.

In one tweet he said, “Already (the money accumulated through the tax) has (fallen in value) from 42% in 2001 to 25% today.”

The NRMA responded by saying the base petrol price plus the excise would then be subject to 10 per cent GST – in effect a tax on a tax.

NRMA President, Kyle Loades. Image

NRMA President, Kyle Loades. Image

The NRMA is hoping to mobilise its 2.4 million members to inundate minister Cormann with tweets opposing the fuel excise.

A spokesperson from NRMA said to, “Apart from alcohol and cigarettes there are no other products in the country where you pay a tax on a tax.

“So this argument the Government uses, that you need the excise to keep up with inflation, completely ignores the fact that you are paying more than inflation on the excise – because the GST is 10 per cent.”

It is estimated the federal government will collect $16 billion over the next ten years from the fuel excise alone. Only $5 billion of that has been earmarked to be returned to roads and public transport.

The NRMA spokesperson continued, “If you are looking to motorists to help fill the Budget shortfall they are already putting in excess of $10 billion a year net into general revenue.”

Kyle Loades, President of NRMA said, “There’s a reason why the Petrol Tax increase didn’t pass the senate – it’s a bad policy that will hurt families who are already paying well above their fair share in tax every time they fill up.

“What was once a tax on a tax has now become a tax on a tax with a Canberra money-grab.”

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