Fed: Abolishing stamp duty not the way to go, says Tas govt

AAP General News (Australia)
12-19-2003
Fed: Abolishing stamp duty not the way to go, says Tas govt

HOBART, Dec 19 AAP - Abolishing stamp duty would have little or no impact on housing
affordability, the Tasmanian government said today.

A report by the Productivity Commission released yesterday said stamp duty on property
transactions, which reaped the states about $7.7 billion in 2002-03, should be scrapped
and replaced with fairer taxes.

But Tasmanian Treasury spokesman and Lower House MP Steven Kons said stamp duty was
an important source of revenue to fund key services in the community, not a deterrent
to housing affordability.

"In its discussion paper, the Productivity Commission recognises stamp duty is not
the cause of rising house prices," Mr Kons said in a statement.

"Obviously real estate activity is a matter of supply and demand and abolishing stamp
duty will have little or no affect on affordability."

Tasmanian Premier Jim Bacon this week pledged to pump a $45 million stamp duty windfall
from housing transactions in 2003/04 directly into the state's new Affordable Housing
Strategy.

AAP las/sjb/de

KEYWORD: HOUSING TAS

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