Sunday, June 8, 2008

Cut taxes for green cars

Mr Rudd seems to be determined to have a hybrid car manufactured in Australia. The Productivity Commission thinks its a load of crap but hey, what would they know? They are only economic experts anyway so the Prime Minister is off to Japan to discuss his plan with car manufactures.

I have been critical of the Ruddmobile plan for some time. Its good old fashioned socialist industry planning with the government picking winners. If Rudd & Co. are any good at commercial decisions they should be in business not politics.

Theres a much better way to get us off oil, give tax cuts for alternative energy cars. Not hybrids which are just more economical petrol cars but any true alternative car such as flex-fuel and all electrics. Imported cars have a 10% tariff and all cars have a 10% GST. Refunding the GST would knock thousands of the average car. Flex fuel cars would end up cheaper then petrol only cars and be the quickest and easiest to introduce. In my view they are the likely to be the most successful. However I know GM have a all electric car, the Volt in the pipeline that could be imported tax free. I'm happy to let the market decide what succeeds.

What were are likely to get is the continuation of tariffs to support the Ruddmobile enforcing higher cost cars on us. Mr Nelson you had the sense to propose a fuel excise cut how about a car tax cut?

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