Car importers in Australia call for tariff break

Car importers in Australia have asked for a tariff break on low-emission vehicles while the government is negotiating for an emergency assistance package that will help sustain Australia’s beleaguered automotive industry. The importers’ demand came amidst speculation that senior Liberal frontbenchers and Treasury spokesman Joe Hockey would not agree to suggestions to reconsider the release of US$500 million which is currently allocated to motor-vehicle subsidies. Sophie Mirabella, the opposition industry spokeswoman downplayed the speculation, describing it as premature. But “The Australian” published reports saying that millions of dollars in local car manufacturing subsidies could possibly be eaten up by the carbon tax, prompting Honda Australia to call for the elimination of the 5% duty on hybrid car imports. Toyota and Renault backed up Honda’s demand. “We encourage the government to eliminate duty on the importation of hybrid vehicles to encourage consumer uptake of this innovative technology,” said Honda Australia company spokeswoman Lindsay Smalley. (January 13, 2012)