Toyota Calls For End To Luxury Car Tax, Reduces Prices

Toyota will again pass on savings from the newly increased Luxury Car Tax threshold as it calls once more for the “discriminatory” tax to be axed.

The company joins the likes of Mercedes-Benz, Porsche, Volvo and Infiniti in reducing prices in response to the threshold’s rise to $61,884 from July 1 - an increase of $1568.

The tax, which was increased from 25 to 33 percent in 2008, applies to every dollar above the threshold - although vehicles with fuel consumption ratings below 7.0 l/100km are subject to a threshold of $75,375.

A number of manufacturers have responded by reducing prices to stay below the trigger, while others have historically enhanced their standard specifications lists to increase value.

Toyota has reacted by reducing the price of 19 models by as much as $470, including LandCruiser 200, LandCruiser Prado, Kluger and Tarago.

Toyota Australia sales boss Tony Cramb said today that the tax should be abolished, “especially as there is no equivalent tax on items such as antiques, yachts, motor boats and jewellery.”

"Australian motorists are already heavily taxed with GST, stamp duty and registration fees when buying a new car, as well as road tolls and a hefty tax on fuel,” Mr Cramb said.

"New-vehicle buyers should not be singled out to pay the additional burden of a so-called luxury tax - especially one that is so inefficient and poorly designed.”

Toyota is not alone in calling for the abolition of the Luxury Car Tax, with Federal Chamber of Automotive Industries boss Tony Weber highlighting the potential for increased competition if the tax were removed.

Buyers shouldn’t expect a positive response from the government anytime soon, however. Amounting to more than $500 million in revenue each year, the Luxury Car Tax is unlikely to disappear.

MORE: Luxury Car Tax, New Car Sales reports

Toyota Price Changes from July 1

KLUGER

LANDCRUISER PRADO

LANDCRUISER 200

TARAGO