Fortescue Metals Group Limited (ASX:FMG) has blasted the Federal Government’s Minerals Resource Rent Tax, claiming it "undermines the very basis of the Constitution".
The tax is due to start on July 1, 2012 after being given the go-ahead last year.
Fortescue strategy director Julian Tapp has told a Senate committee that the tax is an interference within what is rightfully the jurisdiction of the states.
Mr Tapp believes this interference will hinder the states capacity to encourage exploration and development activity and so has called the tax unconstitutional.
In the 2011 financial year Fortescue Metals Group posted a net profit of $952 million.
