Peter Costello Refuses To Comment On Possible 'War Tax'

by Mary Swire, Tax-News.com, Hong Kong

03 October 2002

Speaking in New York on Wednesday, Australian Treasurer, Peter Costello refused to speculate on whether the government will impose a 'war tax' if it joins in military action against Iraq.

Questioned following an investment conference in Manhattan on the $1.3 billion budget deficit, and on the rumours that such a tax may be necessary to finance Australian involvement in any conflict, Mr Costello played his cards close to his chest, suggesting to reporters that:

'You're speculating on something that hasn't occurred. I don't speculate on it.'

The ABC Online news service reported yesterday that Prime Minister, John Howard has also refused to comment on the possibility of a new levy.

Back home, however, the Opposition political parties are determined to present a united front on the issue, with Labor, the Democrats and the Green party all announcing their opposition to a war tax this week.

'This talk of a war tax has got nothing to do with paying for the war - it's got everything to do with fixing the government's budget deficit,' Labor Leader, Simon Crean observed. However, this represents something of a turnaround from the party's stated position earlier in the week.

Speaking on Monday, Opposition Treasury spokesman, Bob McMullan indicated that Labor would not oppose the imposition of a special levy in the event of military action.

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