Cut taxes now urges MCA
The Minerals Council of Australia (MCA) has urged the Federal Government to reconsider the implementation of two new taxes, saying that stifle industry growth and investment.
“If the Government proceeds with plans for two new taxes on foreign investment and exploration, it will have introduced four new taxes on mining since 2007. It needs to get a new trick,” MCA Chief Executive Mitchell Hooke said.
Mr Hooke said that the Government should be refocusing on boosting economic growth through policies that cut costs, promote productivity and reduce soverign risk.
“The minerals industry already pays more than $20 billion in taxes and royalties a year net of the carbon tax and the Minerals Resource Rent Tax,” Mr Hooke said.
“The industry’s effective tax rate – the ratio of taxes and royalties paid as a proportion of net revenues – has remained high and relatively stable, averaging 41.6 per cent since 2001-02. Even net of state royalties, the average effective company tax rate for mining is above the average for all industries.”