ID :
209724
Tue, 09/27/2011 - 14:24
Auther :
Shortlink :
http://m.oananews.org//node/209724
The shortlink copeid
Industry group wants higher GST rate
SYDNEY (AAP) - 27 Sept - The industry employers' organisation believes the GST should be increased to finance the removal of inefficient taxes.
The federal government has said the 10 per cent consumption tax will not be up for discussion at next week's tax forum, but the Australian Industry Group (Ai Group) said in its list of tax priorities released on Tuesday that it supports an increase in the GST rate, or its base broadened, or both.
It says it supports in principle the removal of inefficient state taxes and that a higher GST would help finance the removal "of as many existing taxes as possible".
The group also supports the harmonisation of the payroll tax in the absence of its removal.
At the same time, the company tax rate should be cut to 25 per cent, as recommended in the Henry tax review.
Effective rates of income tax should also be lowered to improve investment, saving and workforce participation incentives.
The government said on Monday that ideas put forward at the tax forum in Canberra on October 4 and 5 will only be considered if they can be fully funded well into the future given the expected pressures facing the economy in the years to come.
The Ai Group says Australia should put in place a tax system that allows greater workforce participation, reduces distortions against saving and boosts business competitiveness by attracting investment.
"The tax forum is an opportunity to put the case for tax reform and to advocate changes that better gear Australia's tax arrangements to contribute to our ability to meet current and emerging challenges and our preparedness to capitalise on current and emerging opportunities," it says.
Other recommendations include further investigation into changing road transport taxation and changes that improve the transparency and accountability of the taxation system.
The Australian Chamber of Commerce and Industry also believes there should be further cuts in both income and company taxes.
However, its director of economic and industry policy Greg Evans concedes there are limits to what can be done in terms of current fiscal policy.
"The government really needs to embark on a major review of its spending to identify waste and inefficiencies so we can deliver more sustainable and meaningful taxation reform in the period ahead," Mr Evans told reporters in Canberra.
In the near term, he said, the government must "stick to its fiscal guns" to bring the budget back to surplus in 2012/13 as planned.
"The IMF only warned last week that fiscal consolidation means that you can take pressure off interest rates and it takes pressures off the exchange rate," he said.
"Having a surplus in 2012/13 is battlement that the economy can stand behind to withstand any external shocks."
The federal government has said the 10 per cent consumption tax will not be up for discussion at next week's tax forum, but the Australian Industry Group (Ai Group) said in its list of tax priorities released on Tuesday that it supports an increase in the GST rate, or its base broadened, or both.
It says it supports in principle the removal of inefficient state taxes and that a higher GST would help finance the removal "of as many existing taxes as possible".
The group also supports the harmonisation of the payroll tax in the absence of its removal.
At the same time, the company tax rate should be cut to 25 per cent, as recommended in the Henry tax review.
Effective rates of income tax should also be lowered to improve investment, saving and workforce participation incentives.
The government said on Monday that ideas put forward at the tax forum in Canberra on October 4 and 5 will only be considered if they can be fully funded well into the future given the expected pressures facing the economy in the years to come.
The Ai Group says Australia should put in place a tax system that allows greater workforce participation, reduces distortions against saving and boosts business competitiveness by attracting investment.
"The tax forum is an opportunity to put the case for tax reform and to advocate changes that better gear Australia's tax arrangements to contribute to our ability to meet current and emerging challenges and our preparedness to capitalise on current and emerging opportunities," it says.
Other recommendations include further investigation into changing road transport taxation and changes that improve the transparency and accountability of the taxation system.
The Australian Chamber of Commerce and Industry also believes there should be further cuts in both income and company taxes.
However, its director of economic and industry policy Greg Evans concedes there are limits to what can be done in terms of current fiscal policy.
"The government really needs to embark on a major review of its spending to identify waste and inefficiencies so we can deliver more sustainable and meaningful taxation reform in the period ahead," Mr Evans told reporters in Canberra.
In the near term, he said, the government must "stick to its fiscal guns" to bring the budget back to surplus in 2012/13 as planned.
"The IMF only warned last week that fiscal consolidation means that you can take pressure off interest rates and it takes pressures off the exchange rate," he said.
"Having a surplus in 2012/13 is battlement that the economy can stand behind to withstand any external shocks."
