Nine out of every 10 vehicles sold in Australia last year was imported.
Nine out of every 10 vehicles sold in Australia last year was imported. vagawi

Federal government reaps nearly $1billion from car tariffs

IMPORTED vehicle tariffs earned the Federal Government $920 million last year and estimates predict it will rise to more than one billion in the next two years.

The tariffs, which have shrunk to about 5%, were introduced to protect the local car industry.

With Australian car manufacturing about to die there are calls for the tariff to be abolished. 

"With local manufacturing coming to an end it is only fair that tariffs on imported vehicles must also stop," Australian Automobile Association chief executive Andrew McKellar said.

Nine out of  10 new vehicles sold in Australia during 2013 were imported.

"If tariffs were designed to help protect the local industry then there is no longer any justification to maintain them," he said.

"The removal of tariffs could save the average new car buyer between one and two thousand dollars on the cost of a vehicle.

"The Government must use the upcoming Federal Budget to announce the end of vehicle import tariffs in order to improve motoring affordability."


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