Fed: Excise cut to be 8 9 cents a litre

AAP General News (Australia)
04-13-2000
Fed: Excise cut to be 8 9 cents a litre

The federal government is expected to announce a fuel excise cut of between eight and
nine cents a litre to offset the impact of the GST on fuel prices.

The announcement is also likely to be accompanied by additional assistance to ensure
high petrol prices in remote areas don't rise further as a result of the GST.

Increased oil production has seen petrol prices drop in recent weeks, but with the
weaker Australian dollar, prices are unlikely to fall below 80-85 cents a litre anytime
soon in major cities.

This means excise will need to be cut by at least eight cents a litre to ensure the
10 per cent GST doesn't increase prices.

It's estimated the rebate will cost the government $500 million over the next four years.

AAP RTV ss/mfh/sjm/wz/sjm/smf P

KEYWORD: TAX FUEL (CANBERRA)

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