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AUSTRALIA: Government axes plans for grape tax

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The Australian Taxation Office has hurriedly cancelled a plan to impose the country's 10% goods and services tax on grapes following intervention by the Federal Treasurer, Peter Costello. The Federal Government faces a general election probably before the end of this year. Bizarrely, the scheme, which outraged producers, would have raised no extra revenue for the government but cost the producers millions of dollars in compliance and result in cash-flow problems.


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