Mining giant BHP Billiton Ltd
(ASX:BHP) has slammed the federal government’s new 40% Resource Super Profits Tax, saying it will significantly impact its Australian operations.
The government announced that it would adopt a recommendation to introduce the new tax yesterday as it released the long-awaited Henry review.
CEO Marius Kloppers says the policy will mean the tax taken on BHP’s profits from its Australian operations will rise from about 43% to 57% in 2013.
Mr Kloppers says the tax would threaten Australia’s competitiveness, jeopardise future investments and negatively impact the country’s future wealth and living standards.
Other major miners have also expressed concern and are assessing the details of the tax package and its impact on their businesses.
The new resources tax will come into effect in July 2012 and is forecast to add an extra $12 billion in revenue to the Australian economy between 2012 and 2014.
The government has tried to soften the blow to the resources sector by stressing that one third of the money raised from the new tax will be returned through a new exploration rebate.
BHP Billiton reported a profit of $7.243 billion in fiscal 2009.
