Australian Treasurer Jim Chalmers is set to abolish another 500 tariffs as part of a push to cut red tape and lower prices for consumers.
The so-called “nuisance tariffs” are low-value charges that generate little revenue but create significant compliance costs for businesses.
The Treasury is set to consult on the exact list of tariffs to be targeted, with submissions being accepted until Dec. 10. Industries that could benefit include imports of tyres, televisions, wine glasses, and air conditioners.
Chalmers said removing the tariffs would reduce compliance costs by $157 million each year and streamline $23 billion worth of trade.
“We’re abolishing these additional tariffs to help cut red tape, ease the compliance burden on businesses and boost productivity,” he said.
“This means cheaper products for Australian consumers and reduced costs for Australian businesses.”
The Productivity Commission has previously warned that some tariffs cost more to regulate than the income they generate. It estimated that for every dollar collected, the wider economy can lose up to $1.60 (US$1.04).
Business Council Chief Executive Bran Black said the decision was “smart and sensible.”
The government says tyre businesses alone could save $32 million in annual compliance costs under the changes, with the air conditioner industry saving around $500,000 a year.
The additional 500 tariffs follow the government’s scrapping of 457 tariffs in July last year, bringing the total to about 1,000 removed over two years.
Currently, tariffs apply to around 10 percent of goods imported into Australia, with the remainder being duty-free.
