The federal government could save billions of dollars a year by cutting fossil-fuel subsidies in next month’s budget, green groups say.
Forward estimates indicate the government plans to offer $44 billion in tax rebates and concessions, accelerated asset write-downs and foregone revenue between the 2012/13 and 2015/16 financial years, according to analysis conducted by Environment Victoria and Market Forces.
Targeting just five of the main subsidies could save about $5 billion a year for the next three years, the groups said.
The largest savings would be to eliminate the fuel tax credits granted to the mining industry, which amount to more than $2 billion annually.
Ordinary consumers pay 38 cents a litre excise on their fuel but miners pay just 6 cents, said Victoria McKenzie-McHarg, Safe Climate Campaign Manager for Environment Victoria.
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