Australia Controversial Mining Tax Falls Below Expectations

The government said it collected A$126m ($130m; £80m) in the six months since it was implemented on 1 July 2012.

It had forecast revenues of A$2bn in the year to 30 June 2013 from the move, which imposes a 30% tax on iron ore and coal mining firms in the country.

Treasurer Wayne Swan said that a drop in commodity prices had hit the resources sector and hurt tax revenues.

“It’s clear revenues from resource rent taxes have taken a massive hit from the impact of continued global instability, commodity price volatility and a high dollar,” Mr Swan said.

“Revenues across the board are down very substantially.

“Minerals Resource Rent Tax (MRRT) is a profits-based tax that raises more revenue when profits are higher and less when they are lower,” he explained.

Large mining firms had opposed the tax, saying it will hurt their competitiveness and affect future investment in the sector.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza