Treasurer refuses to budge on FBT FEDERAL Treasurer Chris Bowen is refusing to budge on tax changes impacting on car sales despite more talks with South Australian automobile industry officials. Motor Trade Association (MTA) chief executive John Chapman spoke with the treasurer by phone on Tuesday after raising the industry's concerns over the policy shift with Prime Minister Kevin Rudd last week. Mr Chapman said dealers had been "smashed" by the drop-off in fleet and salary packaging vehicle sales due to the uncertainty raised by changes to fringe benefits tax (FBT) arrangements announced by the federal government two weeks ago. "This is having a serious impact on dealers' viability at a time when the general economic conditions aren't good," he said. Mr Chapman said he explored a number of options with the treasurer but Mr Bowen was firm in his resolve. "It is fair to say the treasurer is not budging on this issue or indeed making any significant modifications to the FBT changes which the government has announced," the MTA boss said. We agreed to keep the lines of communication open as the FBT proposition is tied to a number of industry issues. Mr Chapman said he also reinforced with the treasurer the importance of Holden maintaining its manufacturing operations in SA and discussed broader structural issues facing the automobile industry. "We have asked the government to look at the automotive sector as a whole and not just manufacturing," he said. We are facing real issues in terms of the rapid pace of change and government has a role in developing policy which ensures long-term stability.