Australia's new tax 'won't curb investment'
By Wang Yanlin |
June 4, 2010, Friday
|
Print Edition
Print Edition
AUSTRALIA'S planned resource tax aims at "encouraging investment," not curbing it, Australian Treasurer Wayne Swan said in Shanghai yesterday.
But he said he was unable to anticipate the reaction of major foreign investors, such as those in China, to the new tax regime.
"The resource tax is positive," said Swan. "The modernization of the regime will encourage investment and create jobs. I am disappointed that some companies are against it."
Australia proposed a 40 percent tax on what it defines as "super profits" on May 2, and the new tax is due to be introduced in 2012. The plan has triggered wide debate in Australia and some Chinese investors also fear it may hurt their interests.
Last month, Australia's Trade Minister Simon Crean said in Shanghai that the new tax was not based on consumption but on profits, and would not boost prices.
Crean said the new tax regime will get "more balanced" and will not cut iron ore supply to China.
China, the world's biggest steel maker, is a major importer of iron ore, a key ingredient in steel making.
Iron ore prices have been surging since last year and have eroded the profits of China's steel mills.
But he said he was unable to anticipate the reaction of major foreign investors, such as those in China, to the new tax regime.
"The resource tax is positive," said Swan. "The modernization of the regime will encourage investment and create jobs. I am disappointed that some companies are against it."
Australia proposed a 40 percent tax on what it defines as "super profits" on May 2, and the new tax is due to be introduced in 2012. The plan has triggered wide debate in Australia and some Chinese investors also fear it may hurt their interests.
Last month, Australia's Trade Minister Simon Crean said in Shanghai that the new tax was not based on consumption but on profits, and would not boost prices.
Crean said the new tax regime will get "more balanced" and will not cut iron ore supply to China.
China, the world's biggest steel maker, is a major importer of iron ore, a key ingredient in steel making.
Iron ore prices have been surging since last year and have eroded the profits of China's steel mills.
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