Wirraway
9th Sep 2004, 17:36
Fri "The Australian"
Industry outraged at Labor plan to raise passenger levy
Steve Creedy, Aviation writer
September 10, 2004
LABOR'S proposal to increase the airline passenger movement charge from $38 to $50 is a massive slug on an industry still recovering from SARS, global conflict and the Ansett collapse, according to a peak tourism group.
Tourism and Transport Forum managing director Chris Brown said the increase would be a revenue windfall for a Labor government at the expense of an industry that was already over-taxed.
Mr Brown said the passenger movement increase would only compound an already unfair tax regime for tourism and transport, putting pressure on operators to cut costs and slash jobs. "Tourism is not a cash cow that can be milked endlessly," Mr Brown said.
"Last year alone, the passenger movement charge squeezed between $60 million and $90 million out of our industry in over-recovery of costs."
The increase, part of Opposition Leader Mark Latham's newly released tax package to help fund income tax cuts, is the latest in a string of passenger taxes and charges to slug airline passengers.
Virgin Blue head of strategy and communications David Huttner said both parties seemed to think air passengers were "a bottomless pit of money to be tapped for various pet projects".
He said the increases in taxes and charges were damaging to tourism and to the bottom lines of businesses and households.
"Policies such as these are offsetting the gains the travelling public and the business community have achieved through the advent of low fares in Australia," he said.
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Industry outraged at Labor plan to raise passenger levy
Steve Creedy, Aviation writer
September 10, 2004
LABOR'S proposal to increase the airline passenger movement charge from $38 to $50 is a massive slug on an industry still recovering from SARS, global conflict and the Ansett collapse, according to a peak tourism group.
Tourism and Transport Forum managing director Chris Brown said the increase would be a revenue windfall for a Labor government at the expense of an industry that was already over-taxed.
Mr Brown said the passenger movement increase would only compound an already unfair tax regime for tourism and transport, putting pressure on operators to cut costs and slash jobs. "Tourism is not a cash cow that can be milked endlessly," Mr Brown said.
"Last year alone, the passenger movement charge squeezed between $60 million and $90 million out of our industry in over-recovery of costs."
The increase, part of Opposition Leader Mark Latham's newly released tax package to help fund income tax cuts, is the latest in a string of passenger taxes and charges to slug airline passengers.
Virgin Blue head of strategy and communications David Huttner said both parties seemed to think air passengers were "a bottomless pit of money to be tapped for various pet projects".
He said the increases in taxes and charges were damaging to tourism and to the bottom lines of businesses and households.
"Policies such as these are offsetting the gains the travelling public and the business community have achieved through the advent of low fares in Australia," he said.
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