BHP suggests scrapping the RSPT
BHP Billiton said on Friday that a proposed resources super profit tax by the Federal Government should be scrapped altogether or make some revisions to address “fundamental failings.”
BHP chairman Jac Nasser told shareholders through a letter that the government is blind for not looking through the problems of the proposed tax reform – where miners pay 40 per cent tax on “super profits, and its impact on the mining industry.
He argued that a tax rate should depend according to the mineral resources being mined in a project, it should be applied only to those minerals with value alone and exclude infrastructure processes to support other activities.
"Substantive redesign of this proposed tax is necessary and, if this can't address its fundamental failings, it should be abandoned," he said.
However, Prime Minister Rudd is committed to pursue his agenda on the tax and will visit Queensland today to hold consultations with miners.
Mr. Rudd said that consultation will be difficult and it will take weeks.
"I think we've probably got weeks and probably months of consultation yet with the major mining companies. We'll work our way through the detail."
Mr. Rudd, who was in West Australia for two days, failed to resolve any dispute with the WA miners.