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Comparably high import duties disadvantage Australian businesses, according to a new study from international accounting and consultancy network UHY.
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Import taxes impairing Aust business
20 August 2015
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6 minute read
The study, which examined the import duties of 18 developed nations and the direct effect on their economy, argues that Australia is greatly undermining its domestic competitiveness.
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Rowan Wallace, UHY Haines Norton managing partner, noted that consumers and businesses are continuing to receive a relatively raw deal despite a high level of imports.
“Duties of between 5 and 10 per cent on key imported items like white-goods, clothes and some electronics certainly makes Australia an expensive place for consumers, but also for business,” he said.
Mr Wallace notes that as Australia tries to move away from a reliance on a mining-driven economy, levelling the playing field in regards to high-end manufacturing and services is vital.
“At present import duties on components could mean manufacturing facilities in Australia are at a disadvantage compared to an equivalent facility in a low tariff country,” he added.
UHY stressed the creation of multiple free trade agreements noting a direct impact on international competitiveness: “Many are benefitting from spreading their net far wider than purely their immediate geographical neighbours”.
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While acknowledging that an examination of import duties is a useful indicator of trade barriers and economic competitiveness, UHY notes there are other taxes and factors that can have a direct impact.
“Australia for example has a luxury car tax of 33 per cent for imports that exceed defined price limits. China, in addition to higher import duty rates on foreign luxury goods, enforces a consumption tax on goods such as alcohol, tobacco, cars and cosmetics, products where the most popular brands are often foreign.”
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