Saturday, Jul 16, 2005 at 22:52
What do the recent changes to LPG tax arrangements really mean?
In late December 2003, the Federal Government announced fuel excise reforms, which will ultimately mean motorists using Autogas will pay an extra 12.5 cpl by 2012.
Currently, fuel excise tax does not apply to Autogas, whereas petrol is taxed at 38.14 cpl. Starting in 2008, fuel excise tax will be added to Autogas at a rate of 2.5 cpl. This will increase by 2.5 cpl for five years, until the fuel excise on Autogas reaches 12.5 cpl in 2012. In today's terms, this will mean that in 2012, motorists will be paying approximately 30% more for Autogas when they fill up. However, it is anticipated that motorists using Autogas in 2012 will still be paying significantly less than those motorists who fill up with petrol.
The Federal Government also announced that between 2008 and 2011, a $1,000 subsidy will be offered to consumers who purchase a dedicated or dual fuel vehicle. However this subsidy is only available to those who purchase new vehicles.
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