The Turnbull Government’s proposed controversial “carbon tax” on cars could likely add more than $5000 to the price tag but facing a major political backlash last night, the Prime Minister has since ruled it out.
“The Government rules out introducing a carbon tax on the family car. Labor must now do the same,” a spokesman said.
“We will encourage more efficient vehicles, which reduce fuel use and emissions. We are still consulting with industry and have a long way to go.”
The Government’s proposal outlining emissions penalties that could be imposed on car distributors who failed to meet the new fuel efficiency target were obtained by The Daily Telegraph.
Car distributors described the proposed model as more “extreme” than any of the measures discussed during 18 months of consultation with the Department of Infrastructure and Regional Development’s Vehicle Emissions Team.
“This would be one of the most extreme efficiency standards in the world and will lead to car prices going up and motorists having fewer cars to choose from,” Australian Automobile Association chief executive officer Michael Bradley said.
“There is no escaping the fact that if the government pushes ahead with this proposal it will mean more expensive cars.”
Federal Chamber of Automotive Industries’ acting chief executive Tony McDonald agreed that it would add “thousands of dollars in emissions penalties” to current car prices.