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The resource super profits tax, also dubbed as the “Robin Hood” tax by the miners, will impose a 40 per cent tax on mining profits, which has provoked miners to lobby against the move of the federal government.

The government earlier has stated the proposed tax will use mineral profits to balance the national budget.

BHP executives have reacted to claims by Deputy Prime Minister Julia Gillard, who said that BHP and its rival miner Rio only paid a tax rate of 13 per cent.

This is not a fair share and that’s why we’re moving to introduce the resources super-profits tax,” she said.

BHP, however, said Ms. Gillard's statements were misleading as she failed to include the corporate tax. BHP claimed it paid $A6.3 billion in taxes with an effective rate of 43 per cent in the fiscal year 2009.

BHP explains that if the super tax would be pushed, the tax rate would increase to 57 per cent by 2013.

The mining tax has received mixed reviews as mining companies, opposition leaders, union groups, and a few State leaders publicly oppose the tax while the Rudd government drew a support from other sectors, such as the financial sector and the Organization for Economic Co-operation and Development.

Angel Gurria, the secretary-general of the OEC, said that Australia's mining profits should be shared equally across the country and should be used as a financial buffer during crisis.

Sourced from www.ibtimes.com