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Green car tax cuts 'short-sighted'

Posted August 20, 2008 07:47:00
Updated August 20, 2008 07:59:00

Canberrans who buy hybrid cars will save on stamp duty.

Canberrans who buy hybrid cars will save on stamp duty.

The Greens say an ACT Government tax cut aimed at getting people to drive greener cars is not as effective as it could be.

Laws to cut stamp duty on energy efficient cars were passed in the Legislative Assembly last night.

Under the new laws people who buy low-emission or hybrid cars could save about $1,000 in stamp duty. Taxes will increase on larger cars and fuel-hungry utes.

Greens MLA Deb Foskey says the scheme is short-sighted because it targets purchase price while a discount on registration would have been more attractive.

"Stamp duty is a one-off charge whereas registration comes off annually and it really would make much more of a difference," she said.

But Chief Minister Jon Stanhope says it will change the cars people choose to drive.

"The most significant result of this policy will be to attract people to the lower emitting vehicles," he said.

The ACT Liberals say the move will target luxury models most people could never afford.

Shadow Treasurer Brendan Smyth says big family cars will be harder to afford while most of the energy efficient cars to receive the discount are beyond the average person's price range.

"They're putting up the duty on the humble ute, they're making things like the Lotus Elise and Lexus and Mercedes-Benz cheaper to buy," he said.

Mr Stanhope says cheaper cars like the Toyota Prius are included and there is an option within most price ranges.

"Almost all manufacturers provide a full range of vehicles to meet different needs within the community," he said.

Mr Stanhope says it is the first such scheme in Australia and is expected to come into force next month.

Tags: states-and-territories, tax, act, canberra-2600

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