Analysis of the New Deal under tungsten and downstream market go from here

State Council executive meeting decided in April on the 28th, from May 1, 2015, the rare earths, tungsten, molybdenum resource tax amount levied by the change from ad valorem, and not to increase the corporate tax burden in accordance with the principle of reasonable certainty tax rate. Meanwhile, to further clean up and standardize the charges, the rare earth mineral resources compensation rates, tungsten, molybdenum is reduced to zero, stop expropriation price adjustment fund, ban related charges fund local governments below the provincial irregularities established. Establishment of Mineral Resource equity fund system. April 30, the Ministry of Finance State Administration of Taxation issued "reform levied ad valorem notice on the implementation of rare earths, tungsten, molybdenum resources tax" levied on Measures include notification on the applicable rate on concentrate sales on ore sales and sales conversion concentrate on Ore associated minerals tax, on tax location, other details about the tax collection matters altogether link eight areas where the most attention is the tungsten resource tax applicable tax rate is determined as 6.5%. Under the New Deal tungsten resources tax and the downstream market will go from here, it will be elaborated on below.

All along, the resource tax reform in promoting China's economic growth mode change process plays a crucial role for the market in terms of significance. For the purposes of the current round of market participants tungsten ore resource tax reform is the heart like a mirror, to the main purpose is to respond to a series of tungsten exports after the impact of the market caused by the abolition of tariffs. Tungsten is an important strategic resource, in order to maintain market stability and development, not a lot of resources out of low-priced domestic market, exports of tungsten product has been subject to high export tariff restrictions. After the WTO case against the rare earth, China had to ban exports of tungsten products. After lowering the threshold for tungsten exports, the market worried about the latter will cause the domestic mining chaotic phase clusters, since it is not possible to control from the outlet, then concentrates on domestic regulation, therefore, the resource tax reform is undoubtedly the best choice. Tax reform would not only mining, tungsten prices some impact, for downstream product market tungsten carbide, high-speed tool steel will also have an impact.

Mining areas: the last resource tax is levied from the amount levied approach, that is to say how much the amount of ore mined on how much money to pay taxes, can be said to be one size fits all model. Resulting from the amount of taxable mining companies "Xianpinaifu" Bonanza is a lot of mining, and mine was idle while poor, is not conducive to the rational use of resources. If you have been a continuation of this idea, the latter once the high-grade ore was mined finish, then later the market is facing difficulties can only lean ore mining, when the market is extremely negative. Changed from ad valorem, mined ore will be calculated and paid resources in terms of concentrate sales tax on tax source configuration more scientific and rational, mining companies effectively guide the rational use of resources, market-friendly and sustainable development of.

Tungsten product prices: In the past tungsten ore resource tax is levied according to the amount of ore mined, charged at the standard 8 yuan / ton, if the ore concentrate in proportion of 1: 400 to calculate, then produce one ton of concentrate required ore resource tax paid 3,200 yuan. In addition to resource tax companies also need to pay compensation fees (compensation amount = sales of mineral products × compensation rate × mining recovery rate coefficient), tungsten concentrate resources compensation at a rate of 2%, exploitation of recovery was 80% Press now one ton concentrate 86,000 yuan / ton price to computing, enterprise selling one ton concentrate on the need to pay 1376 yuan compensation fee. Also according to the present one ton concentrate 86,000 yuan / ton price to calculate the new resource tax standard, sell one ton tungsten concentrate resources required to pay tax for the 5590 tax, do not pay compensation fee. So, in the current market price of tungsten ore, the implementation of the new resource tax, corporate sales a ton of tungsten concentrate more than ever before need to pay 1,000 yuan. After the increase in raw material costs tungsten concentrate, APT and tungsten iron production costs will go up 1500 yuan / ton. In addition, some parts of the New Deal tax will be canceled, for the market as a whole, the rate of increase in costs will be reduced, or may be minimal.


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