A former chairman of BHP Billiton is fully against the resources rent tax proposed by the federal government.

Don Argus told media reporters criticized the proposed resources rent tax, stating that it damages the Australia's economy.

"Here we are, dealing with 18 per cent of Australia's GDP, and we don't understand the (economic) assumptions in the model," Mr Argus told The Age.

Addressing the participants during an Australian Council of Superannuation Investors meeting in Melbourne, he expressed his worries over the introduction of such tax while the world economy is still unstable.

Incumbent BHP executives have publicly declared its disapproval on the 40 per cent tax on mining super profits. Chairman Jac Nasser and chief executive Marius Kloppers have reported that the company's dividends will be cut and projects may be transferred offshore.

But economist Ross Garnaut has criticized the resource sector, who stated that politics should not be included during discussions.

Professor Garnaut, who first recommended a resources rent tax almost 30 years ago, stressed the need to implement the Labor's super profit tax and assured it would not drive investments to other countries.

"It doesn't distort any investment production decisions or trade decisions," he said on Thursday morning.

He also said that industry should respond and debate to the issue in a “more constructive manner” and with an analytical or rational mindset.

"The resources industries are responding to the Henry review and government proposal with concerted pressure and noise, but not yet with analytical statements," Professor Garnaut said.