Excise & Customs Duty
The debit tax does not replace existing excise and customs duty. The reason for this is that the excise and customs duty are levied primarily for the purpose of managing imports and exports. The current revenue from excise and customs duty is $35,837 million (as below).
The Federal Budget
Below is a summary of all of the revenue collected under a debit tax system, where the rate is either 1% or 2%. In both cases the debit tax generates a healthy surplus. Please note:
- People will always adjust their economic behavior to limit their taxes. Consequently only experience will show what the correct percentage should be.