Fed: Howard and Costello renew tax attack on states

AAP General News (Australia)
04-03-2005
Fed: Howard and Costello renew tax attack on states

Prime Minister JOHN HOWARD and Treasurer PETER COSTELLO have launched a combined attack
on the states for refusing to cut indirect taxes as agreed under the GST deal.

Both leaders yesterday used their addresses to the Liberal Party's state conference
in Melbourne to berate the state Labor governments for reneging on the agreement and retaining
the taxes.

Mr HOWARD says the states are rolling in money.

He says Victoria will get $3.2 billion in GST revenue over the next five years, meaning
the state is $3.2 billion better off than it would've been under previous revenue sharing
arrangements with Canberra.

A national treasurers' meeting earlier this month ended in rancour, with the states
saying they'd never agreed to cut the business taxes completely.

The states say the taxes are subject to review and they want the federal government
to resume competition payments.

AAP RTV nl/jv/wjf/w/jo

KEYWORD: TAX HOWARD (MELBOURNE)

2005 AAP Information Services Pty Limited (AAP) or its Licensors.