The motoring industry says the federal government is prioritising revenue-raising over safety by keeping the luxury car tax in place.

With the Holden name set to be scrapped, experts query why hefty tax on imported cars over $67,000 remains given it was introduced to protect the local car industry.

But Treasurer Josh Frydenberg has already refused to abolish it.

Tony Weber, CEO of the Federal Chamber of Automotive Industries, slammed that response on 3AW Breakfast this morning.

“We only have a luxury car tax in this country to raise revenue, and we raise revenue at the expense of accessing the best safety and environmental features from around the world,” Mr Weber told Ross and John.

“At $67,000, that’s not many people’s definition of luxury anymore in motoring.”

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(Carla Gottgens/Bloomberg via Getty Images)