OK, the heat is now on the Rudd government and the poorly perceived Brendan Nelson is banging on the lack of the ALP governments action on petrol prices. Media then reports that Nelson is showing some backbone and that it is important that he keep the government accountable on these issues.
But lets step back a minute. Whilst I am not condoning that Rudd be accountable, let’s just look at the record on petrol prices and the previous government. Was it not the Liberals who introduced GST and which compounded on the sales tax? Was it not Howard who agreed to propel Australia into a mid-east conflict that saw petrol soar to record prices? Was it also not Howard and the Libs who sat back and idly watched petrol hit 90c, then a dollar, then $1.20 and $1.30? Now prices are at the $1.47 to $1.63 (depending on the cycle), the Liberals are crying foul!
Perhaps they should have looked at their money grabbing schemes of years gone by in which they loaded fuel excises to ensure that they maintained their massive budgetary surpluses.
This is perhaps the ultimate lime kettle.
5 comments:
GST actually replaced wholesale sales tax - which was about 22% when it was killed off.
Except in the case of petrol, alcohol and perhaps cigarettes.
The wholesale sales tax was renamed as an excise (which is a commonwealth tax) and hence was not removed.
We pay 22% excise and then GST is taxed on that. Its a compounding tax.
i think you'll find there was excise and duty charged on many goods which then copped a sales tax charge on top. GST is an inherintly fairer system across the board, amd much less prevalent to avoidance.
There was a thing in the news the other day, the tobacco industry is the governments biggest tax payer.
Clay it is funny how you persecute the liberals for changing their tune.
[quote]Was it also not Howard and the Libs who sat back and idly watched petrol hit 90c, then a dollar, then $1.20 and $1.30? Now prices are at the $1.47 to $1.63 (depending on the cycle), the Liberals are crying foul![/quote]
But while this petrol rose the labor party sat on the other side and carried on, talking of solutions for the problem, now when they are in power it seems to be their turn to sit on their hands yet doesn't seem to be their turn to cop flack.
-OB
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