The National Party has committed to a series of tax reductions which will greatly improve conditions for small businesses in the retail automotive industry, the Victorian Automobile Chamber of Commerce (VACC) said today.

VACC Executive Director, David Purchase, applauded the Nationals for agreeing to reduce stamp duty on new cars, to reduce land tax, and also to reduce payroll tax.

“These have all been issues VACC has been campaigning for, for some time. It is pleasing that Nationals candidates can see the bigger picture with these issues,” Mr Purchase said.

“In the meantime, VACC encourages the other parties to take a good look at the effects these unfair taxes have on small business and to also commit to similar tax reductions.”

Mr Purchase said the out-dated Stamp Duty on cars was one of the worst offenders, with family cars now being taxed as luxury cars.

Mr Purchase said while Land Tax had been reduced by the current Labor Government, more needed to be done to alleviate its impact on small business.

“Too many small businesses are paying unfairly for simply finding themselves in high-value property areas,” he said.

“Profits do not necessarily increase in line with land values.

“The community will find these businesses will pack up and move out where it’s less expensive, and they’ll be left with no local mechanic, smash repairer or petrol station.”

Mr Purchase said Payroll tax was a tax on employment and a disincentive to business growth.

“A tax like this puts a burden on small business and puts a brake on their ability to grow, invest and pursue opportunity,” he said.

“The sooner the other parties recognise the negative impact these taxes have on our State, and agree to reduce them, the sooner small businesses can look to the future with confidence.”

Mr Purchase said VACC’s small business members employed more than 60,000 people in the State.