Release: No New Driving Taxes Until Fuel Tax is Cut

The Australian Taxpayers’ Alliance, the nation’s largest grassroots advocacy group representing taxpayers, today voiced its opposition to the Melbourne-based Grattan Institute’s endorsement of a congestion tax for Australian cities like Sydney and Melbourne.

“Congestion taxes around the world are implemented inconsistently and only punish middle and working class drivers who are trying to get into the city to work and support their families.” noted Satya Marar, ATA Director of Policy.

“Drivers already pay through the nose in regressive fuel taxes that make up nearly half their bill at the bowser. Only 25% of what the government raises off this tax even funds the maintenance and upkeep of roads. The rest flows into general revenue where it often supports politicians’ pork-barreling or vote-buying projects.

“Such taxes not only punish drivers, but make goods and services more expensive for the rest of us by adding to transport and logistics costs. They also make our exports less competitive against other economies.

“We support the Victorian and NSW state governments’ decision not to implement a congestion tax, and call for the federal government to provide much-needed relief to drivers and businesses by slashing unconscionable fuel taxes before any new driving taxes, such as a congestion charge, are considered.”