Port Lincoln mayor Bruce Green has suggested a fuel excise as a revenue raising option for the state government.

Mr Green raised the idea at the meeting with Treasurer Tom Koutsantonis in Port Lincoln earlier this month, which focused on the review of the state’s tax system.

Mr Green said personally he was a strong believer in consumption taxes, rather than taxes that negatively affect businesses.

“A tax on how much you use the vehicle would be beneficial, as a pensioner or someone who uses their vehicle less often would pay less than someone who frequently uses the road,” he said.

Mr Koutsantonis said he was shocked to hear the suggestion from Mr Green.

“I was stumped by the mayor with his fuel excise comment, I have never had a regional mayor who called for a fuel excise,” he said.

Mr Green said he could see the fuel excise being an issue with the transport industry.

“It could be an issue as pretty much all our freight is road transport, it depends on how you balance with the registration costs,” he said.

“The roads need funding, people who use the roads should contribute one way or another so reduced registration cost combined with a fuel excise would be more in line with user pay principals,” he said.

The state government has so far received more than 60 submissions following the release of its State Tax Review Discussion Paper in February, which canvasses a number of reform ideas and options for all state taxes.

“Over the last eight weeks I have attended events and seminars with key industry groups in Adelaide as well as forums with regional leaders across the state from Kingston to Port Pirie, Whyalla and Port Lincoln,” Mr Koutsantonis said.

“Discussions have often centred on how to remove barriers for business growth by reforming state taxes like conveyance duty and land tax, while succession costs on business emerged as a particular issue in the regions.”

He is holding one-on-one meetings with key industry and advocacy groups over the coming weeks.

The government will accept submissions up until close of business Friday, April 24.

Extracted in full from Port Lincoln Times.