While local support for the minerals resource rent tax (MRRT) may not be forthcoming the International Monetary Fund has praised it.
In a new report the International Monetary Fund (IMF) has described the Australian government's proposed mining tax as a step in the right direction. It has also said that they should consider broadening it to other mineral resources. The praise comes at a critical juncture when small and mid tier miners are voicing concern over the proposed tax.
The IMF predicts that the Australian economy is set to grow at least by 3% in the next financial year as the mining boom is driving the economy’s recovery. The IMF warned that there was a need to manage the boom carefully. It described the Henry tax review as a comprehensive blue print for tax reform issues. There was a suggestion on becoming more reliant on the consumption based taxes like the GST as it would help eliminate inefficient state taxes.
However the federal Treasurer Wayne Swan was not in favour of extending the MRRT. He also had no plans to change the GST. He said that the government had reached an agreement which was a breakthrough with the mining industry and that is what will be implemented.