The approval on Wednesday of the controversial carbon tax by the Australia's lower house has generated debate even before the measure becomes a law. A day after the carbon tax bill won in a narrow vote, some people have started to collect the tax ahead of the bill becoming a law.

One of the critics of the carbon tax, Queensland Resources Council Chief Executive Michael Roche, described measure as a unilateral action on Australia's end ahead of a global agreement.

Australia is joining a short list of countries moving toward taxing carbon emissions. The list includes major polluting nations such as China and India.

China, considered the world's largest polluter, will start an emissions trading system in six regions by 2013 which will expand to cover the entire country by 2015. Its aim is to reduce China's carbon emissions by 40 to 45 per cent by 2020.

India will start a carbon trading system in 2014. The Asian nation also imposed emission levels for the top 563 polluters such as power firms, steel mills and cement plants. It imposed a carbon tax on July 2010 at the rate of 50 rupees per tonne for coal produced in and imported to India.

At that rate, which is equivalent to $1.07 per tonne, Australia's $23 per tonne rate is almost 23 times over India's carbon tax.

With its carbon tax on coal, India aims to reduce carbon emissions by 20 to 25 per cent from 2005 levels by 2020.

The European Union's emission trading scheme is the largest in the world and has been in place for six years. It has been criticised for failure to cut carbon emissions in some cases and had been hit by fraudulent transactions.

The second biggest carbon dioxide producer, the U.S., has no national carbon tax policy. A bill introduced by Democrats in the previous Congress for a carbon cap and trade system failed.

In Australia, the measure has the potential of dividing the nation into pro and anti-carbon tax groups. Prime Minister Julia Gillard and opposition leader Tony Abbott had called each other names after the narrow win of the carbon tax bill in the House of Representatives by two votes.

Industries, which will initially pay the tax but eventually pass it on to consumers, are opposed to the carbon tax.

New South Wales Minerals Council Chief Executive Nikki Williams warned of the negative impact of the carbon tax on current and future economic growth of the Australian state.

MMG, operator of Century Mine and owner of the Dugald River deposit, estimated the company will pay $18 million yearly for carbon taxes for the first three years of its implementation.

However, the government will cut income taxes and hike payments to pensions and other benefits as a result of the carbon tax collection. The average Australian household would get $10.10 a week in extra benefits and tax breaks, while they have to pay $9.90 more on higher living costs.

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