Rio Tinto Ltd
(ASX:RIO) has spoken out about the federal government’s planned resources tax, saying it could erode Australia’s competitiveness, shrink investment and limit jobs growth.
Managing director Australia David Peever says the 40% taxing of profits over the long-term bond rate, together with corporation tax, would make Australia’s mining sector the highest taxed in the world.
Following in BHP Billiton CEO Marius Kloppers footsteps, Mr Peever has also rejected claims the Australian community is not getting a fair return from the growth in the mining sector.
However, Rio says it is not opposed to tax reform, as long as it protects against sovereign risk, promotes economic growth and improves investment in the resources sector.
On Sunday, the government announced its response to the Henry tax review, which includes imposing the 40% tax on profits made from non-renewable resources from July, 2012.
The miner says it will analyse the potential impact the tax will have on its business and expects to play a constructive role in the government’s consultation process.
Rio Tinto’s net profit after tax came to $5.43 billion in 2009.
