Effective Tax Rates on Mining

I have made you aware in a previous entry, that the mining industry’s organized response to the new Australian mining tax would be articulated through Keep Mining Strong an initiative essentially based on social media. Above is one of their You Tube videos discussing the effective tax rates on mining.

The campaign seems to attract little attention so far. The oldest video on its You Tube channel was released one week ago and has only 2,207 views. Its Twitter account is currently being followed by fewer people (246) than it is following (269). Metrics were taken at 3.45 EDT!

The rates presented in the video are a bit controversial as rates cited in the Brisbane Times suggests that effective tax rates for the mining industry are 29% in Britain, 22% in the U.S, 21% in China, 20,4% in South Africa, 17.9% in Canada and 16.4% in Australia. The worldwide average is 23%. These numbers were taken from PricewaterhouseCoopers’ Effective Rate Comparison of the Global Mining Industry, an annual study of taxes paid by 57 leading mining firms.

The Australian Government will be relying on a $38 million budget to sell its tax on mining to its constituents who, for now, are divided on the issue.