Swan: Carbon tax likely to include fuel and transport
Acknowledging the uncertain movement of global fuel prices, Federal Treasurer Wayne Swan said on Tuesday that government remains undecided on the inclusion of the petrol and transport industries to the planned carbon pricing.
Swan said that the Parliament's multi-party committee has yet to reach a decision on the matter, which is poised to slap carbon emission tax on about 1000 corporations engage in businesses that emit pollutants.
He said that at present, consultations are ongoing and "we haven't taken a final decision about the inclusion or exclusion of fuel or transport."
Amidst the debate, Swan has released an economic modelling on the proposed tax, which entails a tax of $20 for each tonne of carbon.
The Australian Green Party, however, wants to push up that pricing and called on Swan to rethink his policy of issuing parts of the carbon tax's modelling without first consulting first members of the Parliament, or at least the lawmakers who support the proposed tax.
The ruling Labor Party has won the backing of the Greens, along with the independent MPs, for the tax measures that proved to have struck too many sensitive chords on its way for deliberation and possible approval.
Greens Senator Christine Milne reminded Swan that the multi-party committee was in existence to deliberate on the carbon tax and releasing non-finalised details about it is unfortunate "especially before the committee has had an opportunity to discuss it in full."
Regardless of the ongoing debate and the suggestion that Australia may be acting prematurely in adopting a carbon tax, Swan said that the Productivity Commission report that will come out on Thursday will support the country's position on carbon emission.
He said that basing on the evaluation of the commission, allowing the forces of market mechanism to play out its role in a given economy is much preferred as against to the imposition of regulations or giving out subsidies.
Swan added that Australia is not acting alone in the global efforts to curb carbon emissions, which he stressed, must be implemented in the country soon in order for its economic mechanisms to absorb the system and make the necessary changes.