Palmer backflips on tax

Clive Palmer has said that he sees the merits of the mining tax.

This comes after he became known nationwide as the staunchest opponent of a mining tax and the Labor Government.

While he remained critical of the initial Mineral Resources Rent Tax deal struck between the Prime Minister and Rio, BHP and Xstrata, he did see some of the merits of a profits based tax.

While the tax currently stands at 30% for coal and iron ore only, Palmer said a rate of about seven or eight per cent would work well.

“Certainly we could have a profits-based tax, based on a level which was closer to royalties,” Palmer said.

However, he went on to say he does not “agree with a 40 per cent tax, I don’t agree with a 20 per cent tax, all I’m saying is that I do agree with a concept of taxing profits rather than taxing people and an activity.”

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