CCTV.com - CNTV English - CCTV News

Australia's revised mining tax to collect 60 bln USD less in revenue

02-16-2011 14:58 BJT

CANBERRA, Feb. 16 (Xinhua) -- New figures on Wednesday revealed Australian Federal Government's revised mining tax will collect 60. 17 billion U.S. dollars less revenue over 10 years than the original proposed tax.

Former prime minister Kevin Rudd proposed the 40 percent resources super profit tax (RSPT) last year, but the government watered down the tax to 30 percent after Julia Gillard took over from Rudd and agreed on a complex deal with mining firms.

Documents released by Treasury showed the original super profits tax would have made 99.3 billion U.S. dollars in revenue over a decade.

This compares with the revised Minerals Resources Rent Tax ( MRRT), which is forecast to earn 38.6 billion U.S. dollars over the same period.

The Government said it has always been upfront that its revised mining tax will generate significantly less revenue than the original proposed tax.

Prime Minister Gillard refused to make any changes to Labor's planned mining tax after the release of the Treasury report.

"We will not be compromising that agreement to secure the legislation," she told Australia Associated Press (AAP) in Wellington during a visit to New Zealand on Wednesday.

The Australian Greens, whose votes Labor will need to pass the tax, are demanding the original 40 percent super profits tax be reinstated.

According to Greens Leader Bob Brown, the Government gave away billions to mining companies.

"It's very alarming. These figures show that the Federal Government is going to forgo 60.17 billion U.S. dollar in tax revenue with its new deal with the miners," he told reporters in Canberra on Wednesday.

The opposition Coalition on Wednesday also called for the MRRT to be scrapped, given its substantially lower take than the original RSPT.

Meanwhile, Treasurer Wayne Swan said the shortfall should not surprise anyone, because the government made clear the modified tax would raise significantly less money than the original proposal.

He said Treasury's 10-year projections were also subject to many variables, and should not be seen as a "holy writ".

"In the medium-term, we have the revenue to achieve the objectives that we've put in place for the MRRT," he told The Australian newspaper in Brisbane.

BHP Billiton, one of the three companies involved in negotiating a modified mining tax, on Wednesday posted a 72 percent rise to almost 10.6 billion U.S. dollars in first-half ( six months to the end of December last year) net profit.

Swan said BHP's announcement demonstrated why the government had fought hard for the tax, adding that the future of the resource industry is very strong, and that is why Australia does need a resource rent tax.

Editor:Du Xiaodan |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program