DPA/Sydney
Australia yesterday moved closer to becoming the first country to repeal a carbon tax, with legislation approved by the lower house of parliament and sent to the Senate.
The government’s third attempt to introduce the bills to scrap the tax on big polluters after unexpected opposition arose in the Senate last week.
The draft legislation that would give incentives to suppliers of electricity, natural gas and bulk synthetic greenhouse gas to reduce their carbon emissions is now expected to be approved by the Senate today.
The Liberal-led coalition government of Prime Minister Tony Abbott, which has touted the economic benefits of eliminating the tax, had hoped for a quick repeal.
But on Thursday, the Palmer United Party withdrew its support for the carbon tax repeal after a reported stalemate over a last-minute amendments.
Its senators tipped the vote 37-35 when they sided with the Labor Party and Greens against the repeal, and sought to include tough penalties for companies that fail to pass the savings on to consumers.
The government agreed to amendments that include fines on companies equal to 250% of any cost of savings not passed on to customers. Companies are to be given 30 days from the date of the repeal to notify customers of the savings.
Abbott’s party ousted Labour in September, after a campaign in which he promised to immediately scrap the “toxic tax.” The economic benefits would include savings of $550 a year per household, he said.
“We will not rest until this carbon tax is gone,” Abbott told legislators in Canberra yesterday.
The Palmer United Party said it would back the amended bill in the Senate.
Opinion polls have shown the carbon tax, fixed at around A$24 (US$22) per ton on carbon emissions and applied to about 350 companies, is unpopular among Australians.