The complete repeal of the carbon tax will provide early and important relief to West Australian businesses through lower energy costs and the removal of the shadow carbon price on diesel.

An estimated 10,000 WA firms are paying an extra six cents per litre on diesel as a result of the carbon tax package, costing businesses in the state more than $200 million per year.

Unless the carbon tax is removed by 1 July the diesel tax will increase further as the carbon price increases to $25.40 per tonne of CO2.

These extra costs particularly disadvantage WA's mining sector, which has no choice but to use diesel-powered shovels, excavators, trains and electricity generation to operate in remote locations in such a large state.

Calls today from Professor Ross Garnaut, a key designer of the world’s biggest carbon tax, to halt the repeal of the carbon tax should be ignored.

Defenders of the carbon tax, including Professor Garnaut should explain why WA businesses are contributing to a punitive tax that Australian carbon tax raised more revenue in its first six months than the entire European emissions trading scheme did in its first six years.

And these defenders might also explain why the Australian carbon tax raised as much revenue in its first 6 weeks as the Californian carbon trading scheme is projected to generate in its first two years.

The full and early repeal of the carbon tax will provide an important boost to confidence in the WA minerals sector which is operating in an environment with subdued global commodity prices.

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