By Matt Walsh
CANBERRA, July 12 (Xinhua) -- The Australian government has vehemently denied reports that it would be introducing a "car carbon tax" which would slug new car buyers up to an additional 5,000 Australian dollars for purchasing popular vehicles.
On Wednesday, local media obtained a government report which proposes that all new cars from 2022 will be charged an additional 100 Australian dollars (76 U.S. dollars) for every gram of carbon they emit per kilometer over a designated target figure.
That would mean popular cars, including the Toyota Corolla and Hyundai i30, would cost around 3,900 Australian dollars more (3,000 U.S. dollars) to buy - potentially pushing them out of the budget of many Australian buyers.
The report prompted the Australian Automobile Association's CEO Michael Bradley to warn the government against introducing such measures, as they would raise prices of cars and negatively affect the economy.
"This would be one of the most extreme efficiency standards in the world and will lead to car prices going up and motorists having fewer cars to choose from," Bradley told News Corp on Wednesday.
But the government has moved quickly to dismiss the reports. Overnight, Prime Minister Malcolm Turnbull said no decisions had been made.
Environment and Energy Minister Josh Frydenberg on Wednesday also described a "car carbon tax" as a "complete beat up."
Despite denying a carbon tax, Frydenberg did say the government was looking into introducing stricter fuel efficiency standards - something he said had already been introduced by a number of leading Western nations.
"There has been consultation going back to October 2015 on fuel efficiency standards, and the government has made no decisions on the policy to go forward in this area," Frydenberg said.
"In the U.S., Canada, U.K. and the EU, they all have fuel efficiency standards. In fact, 80 percent of the world's light passenger vehicle fleet has these standards. People are getting ahead of themselves saying the government has made a final decision - we haven't."
Education Minister Simon Birmingham was also on the front foot to dispel the rumor on Wednesday, telling Sky News that any policy would be formed in consultation with the automotive industry, not behind its back.
"The government won't be applying a carbon tax on vehicles, and we've been clear in making it certain that this is not something the government would entertain," Birmingham said.
"We do want to make sure, though, that we are driving fuel efficiency in vehicles, because that's actually about making it cheaper for consumers.
"These sorts of processes are not unusual, but we can rule out a carbon tax-style measure on vehicles. Anything we do will be in consultation with the car industry."
Meanwhile Senator Eric Abetz said rumor of the "car carbon tax" was "back in the cupboard where it belongs."
"The suggestion that the department put out had all the hallmarks of a mini carbon tax which is something that is anathema to the Australian people," Abetz told Sky News.
