Luxury Car Tax Submission

Submission - 16th July, 2008

The Federal Chamber of Automotive Industries (FCAI) strongly opposes the proposed increase in the rate of the luxury car tax (LCT) from 25 per cent to 33 per cent.

An increase in the rate of LCT would compound the already significant distortionary impact that the existing tax has on the Australian vehicle market with adverse consequences for motorists, industry and the community.