Australia's $18 million-a-year seed potato sector said the federal government has put the potato industry in jeopardy with a decision to include it in the new 10 percent Goods and Services Tax introduced July 1.
Seed Potatoes Victoria executive officer Tony Pitt said the GST threatens the industry's export market.
"We could see as much as, say, 30 percent loss of market to certified seed production," he said. "That itself would be enough to undermine the certified seed scheme. It is a privately run scheme now-it is set up under government but is purely privately funded.
If it doesn't' generate the revenue required it could collapse. If it collapses we will see the collapse of our export markets along with it.