Fed: Productivity Commission could comment on GST impact
CANBERRA, Aug 4 AAP - A federal inquiry into housing affordability could comment onthe impact of the GST but Prime Minister John Howard maintained Australia's taxation lawswere sound.
Mr Howard has dismissed claims by the federal opposition and state Labor governmentsthat the GST was a major contributor to the blowout in the cost of housing.
He has asked the Productivity Commission to investigate the high cost of housing, whichis pricing many first homebuyers out of the market.
Asked today if the commission would investigate the impact of the GST, Mr Howard saidit could make whatever comments it wanted but it had no power to change the law.
"In the end it's an inquiry; it doesn't have the power to change the law," he told ABC radio.
"We think the taxation laws of this country are sound.
"Obviously the inquiry can make whatever comments it wants."
Mr Howard said the purpose of the inquiry was to assemble information to get at thecauses of the barriers to entry for first homebuyers.
"It is not an attack on the states but everybody who understands anything about housingin this country knows that the land release policies of state governments, the chargesimposed by local governments, things like stamp duty, things like land taxes, all therevenue and costs that come form different levels of government, they are important factors,"
he said.
AAP sm/was/de
KEYWORD: HOUSING HOWARD GST
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