Transport industry faces tax hike

INDUSTRY PLEA... Increasing the National Heavy Vehicle Tax could worsen inflation while hurting consumers if it goes ahead, says Federal Member for Nicholls, Sam Birrell, impacting local businesses in the Goulburn Valley like Kreskas Bros Transport. Pictured are State Member for Shepparton Kim O'Keeffe, Kreskas Bros general manager Adam Katsoutas, and Sam Birrell MP. Photo: Deanne Jeffers

By Deanne Jeffers

A PROPOSED increase in the National Heavy Vehicle Tax may add to inflation and pass on higher prices to consumers while threatening the primary industries in the Goulburn Valley.

Last financial year, heavy vehicle charges increased 2.75 percent. The National Transport Commission (NTC) has released options for the next three years that includes 10 percent annual rises, which would amount to $2.6B in what Federal Member for Nicholls Sam Birrell says is a “$2.6 billion tax on trucks.”

“Transport companies and supply chains are still recovering from the disruption of the pandemic and dealing with higher fuel prices and operating costs,” he said.

INDUSTRY PLEA… Increasing the National Heavy Vehicle Tax could worsen inflation while hurting consumers if it goes ahead, says Federal Member for Nicholls, Sam Birrell, impacting local businesses in the Goulburn Valley like Kreskas Bros Transport. Pictured are State Member for Shepparton Kim O’Keeffe, Kreskas Bros general manager Adam Katsoutas, and Sam Birrell MP. Photo: Deanne Jeffers

Adam Katsoutas, general manager of Kreskas Bros Transport that operates out of Lemnos, said the increase would be felt by companies as well as consumers.

“This 10 percent increase is disappointing and it’s going to be worn by the end user, which is going to be the transport company and will ultimately fall on mum’s and dads in an already difficult year of inflation,” said Mr Katsoutas.

Mr Birrell said that it is the Government’s responsibility to invest in assets that drive the economy, such as the national road network.

“Government should front up that and not just try and push everything back to the industry all the time, because that has pressures,” he said.

State Member for Shepparton said she would be advocating in parliament for much-needed investment in regional roads.

Mr Birrell also added he has been a long advocate for freight rail transport and that the National Party instigated the National Inland Rail project, which is currently underway.

“I think we need to look to the future but it’s not there now. What we’ve got now are trucks and trucks are how we move almost all our transport around.”

“We’re calling on the Albanese Government and the National Transport Commission to rule out that 10 percent a year increase for the next three years, and rule out the concept that you have to have full cost recovery of whatever these trucks do to the roads,” Mr Birrell said.