Proposed Tax May Not be Applied

MiningIt seems that it will be harder for the Australian Government to implement the proposed super profits tax. Experts have expressed concerns that it will be difficult to control the opposition for the proposed tax.

A consultant who was hand-picked by the Government is now criticizing the Government for not implementing the proposed tax.

Lindsay Fox, the founder of Linfox has attacked the Government for not keeping up its promise for implementing the proposed tax. He was invited by the Government in mid-2009 to help in finding ways to tackle long-term unemployment.

He felt the Government needs to do put its ideas into practice.

David Murray, Chairman of the Government’s Future Fund argued that the proposed tax should either be scrapped or abandoned. He also felt that applying the tax to existing projects is short-sighted.

An expert appointed by the Australian Government also pointed that it would be difficult to implement the tax. The Government is expected to face a lot of opposition from the mining sector even as it is preparing for the elections.

Prime Minister Kevin Rudd has argued that he is ready to face opposition from critics which include Anglo-Swiss mining giant Xstrata.

The Company has claimed that it will shelve its $586 million worth of expansion projects in Queensland because of the proposed tax.