Economist questions the legitimacy of change to a tax aimed at international students

An economic expert has questioned the legitimacy of a tax aimed at international students and has slammed a new tax impacting cruise ships as short-sighted.

Independent economist, Saul Eslake, says state governments are constrained by the constitution and there are certain types of tax they can’t levy.

“They can’t levy sales tax, they can’t levy income taxes, and they can levy payroll taxes, and stamp duty, and land tax, and after that they’re really scratching around, as the Victorian government clearly is,” he told Tom Elliott.

Press PLAY to hear his concerns about the legitimacy of the new tax aimed at international students

Image: iStock.