WA business alarmed at threat of new mining royalty double tax
With speculation mounting that the Henry Tax Review will recommend the introduction of a Federal resources rent tax, alarm bells are starting to ring for local business and industry which fears being forced to pay even higher taxes to prop-up the underperforming Eastern States economies.
The peak organisation representing local business, CCI, is deeply concerned by comments made by the Prime Minister yesterday indicating that Western Australia will be penalised for our economic success.
Western Australia is being relied upon more than ever to shoulder the responsibility of driving the Nation’s economy forward.
It makes no sense to introduce new taxes and charges that will further erode the international competitiveness of the sector, on which almost all WA businesses, directly or indirectly, depend.
At the same time, the WA Government has made clear that the State will continue to charge royalties even if the Federal Government pushes ahead with a national resources rent tax.
It would mean that a key WA industry will be taxed twice.
It is not only unfair, but will disadvantage our mining and resources sector at a time when we need them most. It also sends a negative message to prospective investors about the benefits of doing business in Australia.
Months of uncertainty surrounding the detail of the Henry Tax Review will end this weekend when the Review is finally released. CCI and other business groups have been calling for this for months.
CCI will carefully examine the report and continue to work for a better and fairer tax system for local business and industry.
Source: http://www.cciwa.com/30_April_2010.aspx#20863
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