Swan Faces Questions about New Mining Profits Tax

Wayne-SwanTo sell Australian goods and services to China, Treasurer Wayne Swan today visited at the World Expo in Shanghai, but his main objective of the visit seems to be overshadowed by the debate over Australia's new mining profits tax.

He had to face many questions about the new mining tax, when he arrived at the Australian Pavilion at the World Expo. He also welcomed every question on the new tax. "It's a fantastic story to tell in Australia about the development of our resource sector", said Mr. Swan.

Mini campaigns have been organized by the local companies in China to avoid paying so much tax on their Australian mining profits. According to Resource Analyst Xu Xiangchun, the tax has the potential to effect Chinese investment in Australia. The enterprises wanting to invest in Australia are looking closely at the mining tax reform as the Chinese Government is also looking at it.

In China, the Treasurer may face disapprovals from potential investors not wanting to hand over their profits to Australia, however, he is well aware that China has lot more construction work to do, which needs a huge amounts of steel and millions of tons of Australian iron ore every year and helps to generate lot of tax revenues in China.