Mond

Thursday, 9 November 2006

SYKES SEEKS TAX CLARIFICATION ON TOBACCO MONEY

The Nationals Member for Benalla, Bill Sykes, has written to the Commonwealth Government seeking clarification on the tax implications of recently announced payouts to tobacco growers.

Dr Sykes said, “Tobacco growers have contacted me concerned that the payout from British American Tobacco/Phillip Morris will attract a very heavy tax penalty.

“The payout is in lieu of the purchase of tobacco over the next two years. If it is taxed as one year’s income the amount of tax will be much greater than if the income is considered to be spread over two years.

“Growers have similar concerns in relation to the taxing of the Commonwealth Government’s payout.”

Dr Sykes continued, “I have written to Peter McGauran, the Commonwealth Minister for Agriculture seeking his assistance to have these concerns addressed.

“Mr McGauran has been extremely receptive to local input into the Tobacco Industry package and Exceptional Circumstances declaration.”

Dr Sykes concluded, “I encourage tobacco growers to work closely with the TCV and the Commonwealth Government to ensure that the payouts are managed practically and equitably.”

Media contact: Bill Sykes (03) 5762 2100 or 0427 624 989