Fed: Nelson vows to block tax increases

AAP General News (Australia)
08-27-2008
Fed: Nelson vows to block tax increases

CANBERRA, Aug 27 AAP - Opposition Leader Brendan Nelson has vowed to continue to block
any government plans to increase taxes.

But he denies the coalition is deliberately blocking the Rudd government's budget.

The opposition has pledged to block government bills to increase the tax on ready-to-drink
alcoholic beverages, a new excise on condensate, and changes to the Medicare levy surcharge
threshold and commonwealth seniors' health card.

Without coalition backing for its laws, the government needs to turn to the seven balance
of power senators - the Australian Greens, independent Nick Xenophon and Family First's
Steve Fielding - to get its draft laws through the Senate.

Dr Nelson said the coalition would stand firm in opposing any bills which carried tax increases.

"We're not blocking the budget," he told ABC Radio today.

"What we are doing is we're opposing tax increases.

"Which one of these did Mr Rudd tell us he was going to do before the election? In
other words, he didn't go to the election saying he would increase taxes.

"Australians are worse off today than they were a year ago and, from our point of view,
the last thing the economy actually needs at the moment is tax increases."

The coalition has formally agreed to oppose Labor's $2.5 billion plan to scrap a tax
exemption on condensate, a light crude oil extracted from natural gas.

Dr Nelson said the measure would push up domestic gas prices in Western Australia.

"This is a drive-by tax shooting," he said.

"It beggars belief that you can take $2.5 billion off the bottom line of a company
like Woodside and not have that passed onto Australians in other ways."

AAP sm/rl/srp/bwl

KEYWORD: SENATE NELSON

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