Hawke rules out consumption tax

Press, 9 January 1987, Page 5

Hawke rules out consumption tax

By

ROBERT LOWE

of NZPA Sydney The Australian Prime Minister, Mr Hawke, has ruled out introducing a consumption tax if Labour wins the next election. Two months after the New Zealand version — the goods and services tax (GST) — came into effect, Mr Hawke told radio listeners yesterday that he could give an undertaking there would be no consumption tax if his Government was returned to power.

“I am not concerned with bringing in any more taxes,” he said. “We’ve brought in the range of taxes that are necessary

and I am satisfied with what we’ve done.”

A plan by the Treasurer, Mr Keating, for a 12.5 per cent goods and services tax was dropped last year because of its unpopularity. The consumption tax issue looks likely to be a key point of divergence between the Government and Opposition in the lead-up to the election.

The Leader of the Opposition, Mr Howard, has said greater reliance on indirect taxation would reduce income taxes.

The Opposition plans to work out final details of its taxation policy over the next two months.