Rare earth resource tax reform will be included in the map

Recently, this reporter learned from authoritative sources, the state authorities are brewing rare earth resource tax levied way from the original "From the amount of taxable" to "ad valorem." According to the current plan has not been finalized, the northern light rare earth resources in accordance with the 22% tax rate will be levied, the South-ion ore levied in accordance with 35 percent, the national level, the rare earth resource tax burden will be increased substantially.

Reporters learned that, in the face of rare earth WTO litigation losses and some rare earth export tariffs faced cancel the status quo, the state of rare earth regulation and integration efforts will once again tightened, while stepping up to support large groups to improve the degree of concentration of resources, on the other hand a substantial transfer high resource tax to curb massive exports of rare earth, in order to achieve the protection of strategic resources, while helping to reduce the negative effects of losing because of WTO on China's rare earth management brings. Starting in 2011, WTO ruled that China include bauxite, coke, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc, nine kinds of raw materials violations, followed by rare earth, tungsten, molybdenum export management measures have also been the same ruling, "changing the rare earth resource tax levied brewing methods, to some extent, but also a signal for the release of the above-mentioned strategic metals resource tax reform, which may also be the next step of our strategy to adjust the focus of resource conservation." an authoritative "Economic Information Daily" correspondent said.

"On one hand the rare earth resource tax from quantitative change pricing, follow the market can play the role of a relative increase in the sensitivity of the resource tax regulation, while the resource tax rate has been developed by local, especially the heavy rare earth dominated southern provinces more prominent, in Jiangxi Province, resource tax burden for 36,000 yuan per ton, while it was only 06,000 yuan in Guangxi, resource tax reform will undoubtedly make a more equitable market environment. "an authoritative source told reporters.

When the rare earth resources on tax reform, in contrast of the "Economic Information Daily" reporters visited a number of domestic rare earth group has found that due to the current RE rampant black market lacks a fair competitive environment, a substantial increase resource tax agent but will become a "fierce medicine ", stimulating black and illegal smuggling of rare earth industry chain more flooding, while rare legitimate business survival will be more difficult, accelerate industrial crisis.

"By the local protection and the difficulty of monitoring the impact of large, rare black chain rampant, because you can resource tax evasion, VAT, income tax, etc., it seems legitimate businesses lose money prices for rare earths in terms of black and still have a very substantial profits, "North of a large group of rare-earth person in charge," said economic Information Daily "reporters. He admitted that after the rare earth resource tax reform, which means that even a substantial increase in the tax rate, the profit is undoubtedly very attractive, the illegal exploitation of rare earth smelting and separation, sale, export, etc. will also thrive.

Data show that in 2013 the national mandatory production quotas for rare earths 93,800 t (oxide), the industry's assessment of the actual production of about 160,000 tons that year (oxide), 2014 RE mandatory production quotas for 105,000 t (oxide), the industry is also expected to be close to the actual production of 160,000 tons (oxide), in which the South-ion ore black chain is particularly prominent, rare earth downstream products based on projections, in 2013 produced a total of 1,600 tons of dysprosium oxide, thereby estimating needs about 5 Southern ion ore tons, but the rare Earth Industry Association data show that southern mining enterprise was only 04,000 tons, most of them are offered for private dug illegal mining of illegal products.

Many industry insiders worried about the increased burden on legitimate businesses will accelerate the market "Gresham's law," the scene, on the one hand overwhelmed legitimate businesses in order to stabilize costs arising from the impact by means of transfer pricing and other tax resources tax, and even some companies have begun to participate in the "black rare earth" chain, even more detrimental to the smooth implementation of the national implementation cultivate rare large group strategy.

In fact, to change the RE to "cabbage price" massive fire sale situation, our country has taken a number of policy measures. 2007, China began to implement mandatory plan for rare earth production and decreasing export quotas to limit exports of rare earths, and improve individual rare earth export tariffs since 2011 onwards, in order to better protect the resource, in April 2011 for the first time a substantial increase in the rare earth resource tax.

Reporters learned that, in 2011, the Ministry of Finance, State Administration of Taxation issued a notice for the first time, decided since the year April 1, uniform adjustment of rare earth ores resources tax, the increase rate of more than 10 times. Rare earth resources tax was adjusted as follows: light rare earths including Bastnaesite, solitary quarry, 60 yuan per ton; the heavy rare earths including xenotime, ionic rare earth mine, 30 yuan per ton.

Many industry experts on the "Economic Information Daily" reporters, said while the rare earth resource tax reform, a substantial increase in resources tax is an important means of regulation of rare earth industry, in particular, can enhance the market price of rare earths from the source, so that it reflects the resources scarcity and environmental costs of mining and changing supply and demand through price increases, effectively reduce smuggling and other countries to buy hoarding rare phenomenon, while helping to reduce lost because of WTO on China's rare earth managed to bring negative effects.

But on the other hand, for the rare earth resources tax adjustment scale and magnitude may still need research and consideration, especially in the current domestic rare earth black flooding, lack of fair market environment, if a substantial adjustment in accordance with the above ratio of rare earth resources tax may make black already difficult to monitor more crazy and smuggling of rare earth chain increased, while the number of legitimate companies are in trouble, so since not only affect the ongoing industrial restructuring, but also make resource protection again threatened.


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