The car industry has slammed the Victorian government’s proposed luxury car tax.

It would mean vehicles priced over $100,000 would have an additional tax on top of the federal Luxury Car Tax.

Low emission vehicles, motor homes and dealer demonstrators are exempt from the tax.

The Federal Chamber of Automotive Industry CEO Tony Weber tells Ross Greenwood the plan is an example of “stupidity”.

“The market in Victoria is down 10 per cent over the year and you’re putting a luxury car tax on top of that.

“The timing is really quite poor.”

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