TOYOTA CALLS FOR LUXURY CAR TAX ABOLITION
Toyota, Australia's leading manufacturer, importer and exporter of cars has recommended the abolition of the Federal Government's Luxury Car Tax, following reports of a tax loophole.
Toyota's recommendation to abolish the Luxury Car Tax is consistent with the 2010 Henry Tax Review.
Toyota Australia senior executive director sales and marketing David Buttner said the Luxury Car Tax was inefficient, punitive and poorly designed.
"Toyota is Australia's number one luxury car brand according to the Luxury Car Tax regime. In 2010 the top two vehicles exceeding the Luxury Car Tax threshold were the Toyota Prado and LandCruiser with 15,423 and 7,273 car sales respectively," Mr Buttner said.
"The current Luxury Car Tax was introduced in 2000 and since then the price customers are prepared to pay for cars has risen. However the tax threshold has not kept pace and today customers have to pay an unfair tax on cars that exceed $57,466, a level that most people would not consider to be a luxury car."
Toyota Australia believes the tax also penalises people who customise their vehicles.
"With an increasing number of accessories, such as roof racks, bullbars and tow bars available as vehicle extras, vehicles priced below or on the cusp of the Luxury Car Tax threshold currently creep past the threshold once the accessories are added," Mr Buttner said.
He said the tax was discriminatory because it only applied to vehicles and no other luxury item.
"Toyota Australia and the Federal Chamber of Automotive Industries have long opposed the Luxury Car Tax on the basis that no other consumer product has an additional tax applied simply because the value of the product exceeds an arbitrary threshold.
"It is a tax people have to pay in addition to GST, stamp duty and registration fees when buying a new car. On top of that they pay tax on the fuel they use in their cars," Mr Buttner said.
"Toyota Australia would like to see the Luxury Car Tax abolished. But if not, then at the very least, it should be fundamentally reformed to feature a more realistic threshold and to exclude low emissions vehicles and parts and accessories from the tax," Mr Buttner said.
|"It is a tax people have to pay in addition to GST, stamp duty and registration fees when buying a new car. On top of that they pay tax on the fuel they use in their cars," Mr Buttner said.|
There's nothing like a Govt for screwing the average citizen...
So now a cocky's Landcruiser is a luxury car! Anything to protect Holden and Ford.
Simple solution for Toyota, stop charging rip-off prices and get your cars under the limit.
Hell, 20 years ago even the European importers had the brains to penny-pinch options from their cars to get it under the LCT ($30k from memory at the time, it was just over the cost of a Fairlane but well under the cost of a LTD).
If Lexus/Toyota can't sell a IS250 or RX350 for under $57k (with options) when they sell it in the US market for $35k they deserve to lose sales to makers that can work within the system (I'm looking at Hyundai as an example here, #3 in the Australian market last month and coming strong). They can always make it up by charging a fortune for spare parts (oh, wait, they already do :blink: ).
Make it exempt for people who need a LandCruiser (primary producers and the like, not soccer moms). BUT at the same time also classify the LC as a light truck (which is what it really is). What do they weight these days, 3 tonne or something ?
I wouldn't say the reg's protect Holden or Ford either, from memory HSV doesn't sell a car under $57k and FPV aren't far behind (plus Ford's Territory must reach around $57k in top-end kit), and there's plenty of them on the road. Something along the lines of "A fool and his money..."