FEDERAL Treasurer Jim Chalmers announced the government will cut the 5 per cent import tariff for hundreds of items, including fishing reels. The cuts will be included in the May budget and will take effect on July 1.
Chalmers says the tariffs are a nuisance for business, raise little money and ultimately the business compliance costs and the process of applying for exemptions lead to higher prices costs, which are being recovered from consumers in the form of higher prices.
Import tariffs, some more than 20%, were introduced soon after Federation as a means to protect Australian producers from imported goods. They were once an important revenue source for the government. However they have reduced over the years because of negotiated free trade agreements between Australia and other countries and are now less than 1 per cent of government revenue.
Source: NSW Council of Freshwater Anglers
