In the News: Car use 'costing nation billions'

The Age, June 11, 2009.

Car use is costing Australia billions of dollars a year due to pollution, congestion, accidents and rising obesity levels, a public transport lobby group says.

The Public Transport Users Association has called for tax changes to discourage vehicle use and road building as part of its submission to the Federal Government's tax review.

It said fuel taxes, vehicle registration, insurance costs and fringe benefits tax should be formulated to reduce vehicle use.

It recommended "all levels of government raise their commitment to walking, cycling and public transport as lower cost forms of transport".

The association said the yearly increase in fuel tax based on inflation should be reintroduced.

The submission said tax concessions for motor vehicle use and failure to price the full cost of car use were "distorting transport choices away from the most economically efficient, socially equitable and ecologically sustainable" forms of transport.

The association said tax from motor vehicle use could be used to "cut the budget deficit" or reduce stamp duty on purchasing homes, rather than build new roads.

Read the full article: http://www.theage.com.au/national/car-use-costing-nation-billions-20090521-bg7n.html