Swan won’t rule out higher mining taxes

Treasurer Wayne Swan has refused to rule out further imposts on the mining sector and labelled pre-federal budget rumours of a plan to scrap the diesel fuel rebate as malicious.

Atlas Iron chairman David Flanagan, who has been one of the most vocal critics of the Minerals Resource Rent Tax, drew a sharp response from his political nemesis when he asked at a business function in Perth on Wednesday whether Mr Swan had any nasty tax surprises in store for the sector.

“I’m not ruling anything in or out and I never do during a budget process,” Mr Swan said.

“But we have not walked away from substantial business tax reform if that’s what the business community wants.”

Mr Swan said the government had not contemplated any changes to the diesel fuel rebate “at all”.

“I regarded the way in which that rumour was circulated around the community as being particularly malicious.”

Mr Swan said he knew the rumour was used by the Liberal Party as a fundraising device.

“That explains some of its origins,” he said.

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