It’s time the Federal Government stopped charging GST on petrol, the Victorian Automobile Chamber of Commerce (VACC), said today.

VACC Executive Director, David Purchase, said the Federal Government’s GST on petrol earned it approximately $5.6 million a day.

This figure is based on an average Melbourne pump price of $1.37 per litre.

At this price, Mr Purchase said the Government took 13 cents per litre from the GST alone, on top of 38 cents per litre fuel excise.

“Our petrol already has excise tax on it. GST should not be charged on the excise component of the pump price; in doing so, the Government is unfairly placing a tax on a tax.

“The Federal Government is fleecing more than $2.1-billion a year out of Australian motorists’ pockets on the GST component of petrol alone.  

“This is indefensible tax policy and counter to the Federal Government’s pledge on GST when it proposed its introduction.

“The GST should not sit on the excise component of the pump price. We ask the Government to remove this tax from the excise tax. Doing so would reduce the price of petrol by nearly four cents per litre.
 
Mr Purchase said that high fuel costs were not only hitting hard-working families, but also the petrol station operators and owners.

“Not many people realise it, but service station operators and owners make around $2.40 on every $86 tank of petrol.

“Every time the petrol prices go up, more drive-offs occur and our service station operators suffer for it.”

“Dropping the GST would still leave the Government collecting 38c per litre excise, which generates a huge tax take for the Government,” Mr Purchase said.