Mining tax's $8 billion shortfall

The ALP's proposed mining tax faces an $8 billion shortfall, according to a confidential report.

AAP

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THE Gillard government's proposed mining tax faces an $8 billion shortfall in revenue, according to a confidential report, The Australian newspaper says.

The report estimates the mineral resources rent tax will raise about $2.5 billion in its first two years, compared with the $10 billion the government forecast, the newspaper said on Tuesday.

The report, by global resources intelligence firm Intierra, has not been released.

It estimates fewer than 50 companies will pay the tax.

It also highlights concerns among miners that in order to raise the projected $10.5 billion, a Labor-Greens government would raise the tax or expand it beyond iron and coal.