Tuesday, August 08, 2006

Oh yes you can, Mr Howard!

"More than 15 billion litres of petrol were consumed last financial year, leaving aside business use.

Last financial year motorists spent $18.8 billion, of which $1.88 billion was GST.

If pump prices stayed at $1.40 a litre this year, they would spend $21.2 billion and GST collections would rise by $240 million, assuming petrol consumption remained static."

Mr Howard tells us the government can do nothing about petrol prices. It's the world oil price you see, completely beyond our control.

What about the tax Mr Howard? 'Excise' at 39.643 cents for unleaded petrol plus GST. That's not beyond your control, you can do something about that.

According to Shell, at a pump price of 138 cents, product cost is 78.7 cents, tax is 50.7 cents, Shell & retail margin is 8.6 cents.

There are many ways tax could be reduced - removal of GST altogether; GST only on cost not on 'excise'; a simple fixed dollar amount regardless of price and so on.

It's not out of the government's control, it's not impossible. Only the political will to do it is required.

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