Independent senators fear that a rise in GST will be the thin end of the wedge that will ultimately see Australia with European-style rates of 20% or more
A key Senate crossbencher fears Australia will end up like Europe with a consumption tax of 20% or more.
Liberal Democrat David Leyonhjelm has hit out at the possibility of increasing the GST to 15%.
‘The history of increases in GSTs, around the world is that if you increase it once it will then go up again,’ he told reporters in Canberra on Tuesday.
‘You end up like some European countries’ VATs – value-added taxes – or GSTs at 20% or over.’
Finance Minister Mathias Cormann sidestepped questions about the government’s tax reform process, timetable for release or whether there will still be a green discussion paper or a white paper on tax reform.
‘The specific process is a matter for the treasurer,’ he told ABC Radio.
Senator Cormann maintained the tax package would be revealed sometime before the election so Australians could pass judgment on it.
Independent senator Nick Xenophon says junking the process will be at the government’s own peril.
‘You can’t do this off the back of an envelope,’ he told reporters.
Meanwhile, state and territory leaders may head north next month in a bid to overcome a stalemate on the GST.
Northern Territory Chief Minister Adam Giles has invited leaders to Darwin on March 4, ahead of an expected Council of Australian Governments meeting in April.
AAP
