Media Release

Passenger levy should end when taxi compo ends

17/11/2016 1:00 pm

The Greens are urging the South Australian Government to guarantee an end date to its $1 per trip passenger levy, which is being introduced to compensate the taxi industry following the entry of Uber into the market.

“The Government acknowledges that it will collect sufficient revenue to pay its compensation commitments within four years, however the levy will last forever,” said Mark Parnell MLC, Parliamentary Leader of the Greens SA.

“This means that the passenger levy will simply become a new tax long after the purpose for which it was raised has been satisfied.”

“The Greens believe that once compensation has been paid, the tax should end.”

The Greens have filed an amendment to the Budget Bill which inserts an end date to the levy after four years. The amendment will be debated in the Legislative Council after 3.30pm this afternoon.

“Taxing people who choose to use taxis or Uber rather than drive themselves will further entrench private car dependence. It’s also unfair on those who can’t drive such as people living with disabilities," said Mr Parnell.

“The Greens want to help the Government maintain its tax base, but slugging people who don’t drive or penalising those who choose not to drive themselves is unfair.”

Experience shows that taxis and Uber reduce the need for public and private car parking and can even encourage people to dispense with a private car altogether. For other people, an affordable taxi or Uber service can make an expensive second car unnecessary, particularly in the city and inner suburbs.

“If the Government is serious about city living and urban consolidation, then taxing taxi and Uber passengers is counter productive,” concluded Mark Parnell.

printer friendly version

Get email updates