International Journal of Mineral Processing and Extractive Metallurgy
Volume 4, Issue 1, March 2019, Pages: 26-35
Received: Mar. 26, 2019;
Accepted: Apr. 30, 2019;
Published: Jun. 18, 2019
Views 280 Downloads 29
Minjie Lian, Sinosteel Mining Co., Ltd, Beijing, China
Mushou Lai, Sinosteel Mining Co., Ltd, Beijing, China
Mining industry is a very important industry in China. Its tax and fee policy is related to the whole industry. This paper summarizes the main types of taxes and fees involved in iron ore in China, Australia, Russia, Cameroon, Brazil, India and South Africa, and also compare the comprehensive tax and fee burden rates of iron ore companies in China with those of four major international mining companies, Rio Tinto, BHP Billiton, Valley and FMG. It concludes that the comprehensive tax and fee burden rates of iron ore companies in China are higher about 6% than those of the four major international mining companies. The main reasons for the increase are unreasonable industrial orientation of mining industry, high resource tax and value-added tax rates, few deductible items of value-added tax, and unreasonable collection of local special taxes and fees. Finally the author puts forward five suggestions on how to reduce the tax burden of iron ore companies. First, the government can improve the tax system and form a scientific, reasonable tax system. The second is adjusting the mining industry from the second industry to the primary industry. The third is to formulate a national strategy to ensure the safety of iron ore supply. The fourth is to uniformly determine the collection standard of resource tax rate by the country, cancel the unreasonable tax and fee collected by local government. The fifth is to increase fuel tax credits for mining companies.
The Influence of Iron Ore Tax on China's Metallurgical Mines, International Journal of Mineral Processing and Extractive Metallurgy.
Vol. 4, No. 1,
2019, pp. 26-35.
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
China Metallurgical Mining Association, Present Status and Development Trend of Metallurgical Mines in China, pp. 14-21 2014.
LI Xin-chuang, Keeping the Orientation of Comprehensive Deepening Reform Creating a New Pattern of Iron Ore Exploitation, China Steel, No.4 2014, pp. 7-11.
LI Gang, Analysis on Taxation Reform of China's Iron Ore Companies Based on International Tax Comparison, Research of Finance and Accounting, No.2 pp. 14-17, 2015.
LI Gang, An overview of Australian Mineral Resources Management and Fiscal and Tax System, Finance and Accounting Monthly, No.4 pp. 109-111, 2014.
DMR of China, Selection and compilation of mining laws in various countries, Beijing: China Earth Press, 2005.
LIU Chao-ma, The Analysis of Australia Mining Investing Environment and Policies, World Nonferrous Metal, No. 10 pp. 26-29, 2015.
LI Gang, an Analysis of Australian Mineral Resources Tax System: A Case Study of Western Australia, Sub National Fiscal Research, No.9 pp. 23-27, 2013.
HE Jin-xiang, Taxation of mining and oil & gas industries in Russia, China Mining Magazine, Vol.25, No.4, pp. 51-54, April, 2016.
WANG Rui-sheng, Study on Mineral Resource Administration System of Peru and Brazil, Natural Resource Economics of China, pp. 4-7, Nov. 2007.
WANG Wu-min, MA Na, a Brief Analysis of Brazilian Mining Right System, Land and Resources Information, No.1 pp. 30-35, 2013.
YANG Lin-lin, Research on Indian Tax System and Investment Tax, International Taxation in China, NO.6 pp. 55-61, 2016.
ZHANG Lan, Impact of Resource Tax Increase on Iron Mine Projects, Nonferrous Metals Design, Vol.39 No.4 pp.39-42, Dec. 2012.
WANG Hua-chun, ZHENG Wei, An Overview of Mining Investment Legal System of South Africa, Natural Resource Economics of China, pp. 57-62, July 2013.
DMR, Mineral and Petroleum Resources Development Act, pp. 60, April, 2004, South Africa.
LIU Yu-yi, The Current Situation and Improvement of the Taxes of Mineral Industry in China, Mining Research and Development, Vol.23 No.5, pp. 57-60, Oct. 2003.