"The Treasurer's decision to abolish around 500 so-called 'nuisance tariffs' is the kind of economic reform Australia needs", Innes Willox, the Chief Executive of the national employer association Ai Group said today.
“When it comes to nuisance tariffs, the name speaks for itself and there is a strong case for removing the range of tariffs proposed by the Federal Treasurer. In aggregate, they generate very little revenue, and exist despite there being no local industry. They also impose significant paperwork costs on industry and raise the price of goods for businesses and consumers across the economy.
"The Productivity Commission has estimated the cost of nuisance tariffs to be between 59c to $1.57 per dollar of revenue raised. This makes them an extremely inefficient form of taxation and industry policy.
“As with earlier removal of Australian tariffs, there will be clear transitional and often localised negative impacts. Employees, supply chains and the businesses directly impacted will need to adjust. The benefits from the removal of the tariffs can be fully achieved if transitional costs can be reduced.
“We strongly encourage the Government to engage closely with relevant stakeholders on this important reform,” Mr Willox said. “Ai Group will work with members to ensure that there are no unintended consequences."
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