Taxes on luxury cars are set to rise from 25 to 33 per cent.

Treasurer Wayne Swan says it’s only fair to increase taxes for people who can afford luxury vehicles in the first place.

He’s told the Nine network: “We don't think it is unreasonable for people who have done well in recent years from government decisions in terms of top-end tax cuts, just pay a little more for a luxury car.”

A luxury car worth $100,000 is currently taxed $8000, under the new system that will jump to $10, 500.

Do you agree with the government’s decision to do this?

The move will mostly affect luxury imported cars, but it will also affect locally produced cars such as the Holden Statesman and Holden Caprice.

Opposition Treasury spokesman Malcolm Turnbull says it’s going to make all cars more expensive, while automotive groups say the move will hurt local production.

What do you think? Is targeting the rich, via luxury cars – a good idea?