Good news: Most hated tax in Australia to be scrapped
Treasurer Josh Frydenberg, who has been spearheading the move to scrap the “tampon tax” that attracts the 10 per cent goods and services tax (GST), said that “common sense has prevailed,” reported The Guardian.
Frydenberg received the support of states and territory treasurers to forge ahead with the motion in a meeting in Melbourne on Wednesday. Prime Minister Scott Morrison had flagged the scrapping of the tax when he was still treasurer in August.
While it's a win for consumers with the price of tampons to be reduced, states and territories will take a revenue hit of $30 million.
“The cost to New South Wales is about $10 million a year, but for a good cause," said NSW Treasurer Dominic Perrottet, according to news.com.au.
“I think it’s something that should have been done some time ago,” Perrottet added.
“This is a huge win for all Australians who menstruate and shows the power of grassroots movements when we work together,” said Greens Senator Janet Rice.
“I’m so pleased that finally, both major parties have listened to the huge groundswell of Australians who knew from the start how sexist and unfair this tax was.”
It’s been a long, hard-fought battle to have this most hated of taxes removed ever since John Howard’s government ‘s introduction of the GST in 1999, which didn’t fall under the health goods exception, reports The Guardian.
The disparity became glaringly apparent when other products like condoms, lubricant, Viagra, nicotine patches and sunscreen were included under the health exemption.
The “tampon tax” is due to cease from January 1, 2019.
What other GST taxes do you think should be scrapped? Have your say in the comments below.