THE Victorian opposition is calling for the state's fire services insurance levy to be ditched.
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South West Coast MP Denis Napthine said the levy should be scrapped to end the inequality in insurance premiums for businesses located outside of Melbourne.
Dr Napthine said Ballarat-based firms were paying around 18 per cent more than their city counterparts because of the added levies and taxes that come with operating in a regional area.
Dr Napthine said the extra taxes were deterring businesses from relocating to regional Victoria.
"We have got to have a system for funding the fire services, but we need to make it fair and equal for all Victorians,'' he said in Ballarat last week.
Australian Industry Group Ballarat region manager Kay Macaulay said the levy was another tax on Ballarat businesses.
"It's just another impost. There should not be any disparity between city and regional areas,'' she said.
Dr Napthine called on Victoria to adopt a system where all landowners pay levies to the fire service, with the levies based on capital improvements to the land, not the size of the land.
"Everybody should be contributing to the fire services, not just those paying insurance," he said.
The Victorian Treasurer's office did not respond to requests for comment from The Courier on Friday.
