ALC wants equality for carbon tax

The Australian Logistics Council (ALC) is calling for the government to ensure that all modes of transport are treated equally under the new carbon tax.

In a letter to the Prime Minister and other key parliamentary stakeholders, ALC Chief Executive Officer Michael Kilgariff has called on the government not to discriminate between the road, rail, maritime and aviation sectors through its carbon price policy.

“ALC supports the decision to exempt heavy vehicles from a carbon price until 2014, however, we believe this measure should be applied consistently across the transport modes to ensure an equal playing field in the freight transport sector,” Mr Kilgariff said.

“As it currently stands, the rail, aviation and maritime sectors will be paying an effective carbon price from 1 July 2012 through changes to their fuel tax credits and excise arrangements.

“This is two years before heavy vehicles will be required to pay an equivalent price, and that is assuming a future parliament actually approves measures to reduce the fuel tax credit heavy vehicles can receive.

“To ensure the Government’s intended sole taxation mechanism to price carbon works fairly on day one, ALC is calling on the Government to ensure competitive neutrality between transport modes under a carbon price, by eliminating this two-year inconsistency which has the potential to distort consumer choice as to the mode of transport used to freight goods,” he said.

“The freight transport and logistics industry stands ready to make a positive contribution towards transitioning Australia to a low carbon future, but our efforts should be accompanied by policies that ensure competitive neutrality across the transport modes.”

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