The Australian government has seen the proposed mining tax being criticised and slammed by the mining industry and analysts but it remains committed to seeing it passed into law. The federal treasurer Wayne Swan said that they would fight for it in the parliament as it was good for the economy.
The Organisation for Economic Cooperation and Development or OECD said that the Minerals Resource Rent Tax (MRRT) was justified in an economic report on Australia that it released on Sunday. Mr Swan was delighted with the endorsement of the OECD for the proposed mining tax.
The Greens who hold the balance of power in the parliament have been touting for a higher tax level to raise more revenue for welfare projects. A fact that has been supported by the OECD which felt that the 30% tax level was rather low and that some revenue should be put into a reserve fund.
This has met with considerable opposition from the mining industry which is already unhappy with the deal that the Gillard government has cut with the three major mining companies, BHP Billiton, Rio Tinto and Xstrata. There seems a tough fight ahead for Australia’s mining industry.