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EU demands Australia scrap taxes on European cars

EU demands Australia scrap taxes on European cars

A European Union trade negotiator claims Australia should remove automotive taxes during latest talks
European-made cars could have their prices slashed by up to 38 percent under a new trade deal with Australia if EU trade negotiators get their way.

Slashing the 5 percent duty on imported luxury cars and the 33 percent Luxury Car Tax (LCT) on the more expensive models has been a key demand in the negotiations, according to a senior EU trade negotiator currently visiting Australia.

Cornelis Keijzer told Nine Media that Australia had agreed to discuss the removal of the automotive taxes.

Speaking in Melbourne, Keijzer said that the EU’s push for the removal of both taxes was “one of the key demands on our side”.

“You have all these taxes on top of each other, which is exactly the problem,” he said.

The EU’s Head of Trade and Economic Section reckoned the five percent import tax is likely to go, but while the Australian government said the Luxury Car was on the table “they’ve not made any concession on this so far”.