AMEC labels mining tax discriminatory

 The Association of Mining and Exploration Companies say the latest draft of the mining tax is still discriminatory and has not addressed the issues.

“The serious discriminatory nature of the proposed Minerals Resource Rent Tax (MRRT) has still not been addressed by the Commonwealth Government in its latest Exposure Draft of the legislation,” Simon Bennison, AMEC CEO said.

“Expert independent modelling previously conducted by the University of Western Australia, shows that there will be at least a 4% difference in the level of Effective Total Taxation between a project that was in existence before 2 May 2010 (mostly the three major iron ore and coal miners) to that applying to less advanced or new developments after 1 July 2012.

“Although this significant issue has been brought to the Government`s attention on several occasions, no changes have been made to the draft legislation that will create a level playing field.

AMEC go on to highlight the complexity of the proposed tax, pointing to more than 300 pages of explanatory materials that were issued in conjunction with the legislation.

“AMEC and its members continue to oppose this additional tax, and will continue to make appropriate representations to have it rescinded in its entirety,” Bennison added.

“Despite AMEC having previously written to the Prime Minister on these significant issues, the concerns of the vast majority of industry continue to be ignored by the Government.”

China has also vented its anger at the mining tax.

After Western Australian premier Colin Barnett’s recent visit to the country, he said China — the biggest buyer of Australia’s iron ore and coal — was "certainly unhappy" about the federal government taxing the resources.

“China sees that as a tax directed at them, and are extremely resentful about that,” he said.

“They certainly are very angry over the mining tax and they raised that repeatedly at the meetings over the last few days.”

 

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