On August 26, the 12th meeting of the Standing Committee of the 13th National People's Congress adopted the resource tax law of the people's Republic of China, which shall enter into force as of September 1, 2020. The Interim Regulations of the people's Republic of China on resource tax promulgated by the State Council on December 25, 1993 shall be repealed at the same time. According to the new method, in the field of rare earth related, the beneficiation tax rate of light rare earth is 7% - 12%, and that of medium heavy rare earth is 20%.
In the past, the amount and price of rare earth taxes have been implemented in China, and local governments have also formulated corresponding measures to collect taxes. Now, the resource tax raises the provisional regulations to the resource tax law, and clarifies the mineral processing tax rates of light, medium and heavy rare earths. The objective effect is to improve the tax rates of relevant resources.
In fact, one of the most important points in the resource tax law is that the "resource tax is generally levied from the price" has been established, which will have a far-reaching impact on accelerating the establishment of a standardized, fair, reasonable and efficient resource tax system in the rare earth industry, and playing the role of resource tax in promoting resource conservation and intensive utilization and ecological environment protection.
First, the implementation of ad valorem collection of resource tax can maximize the function of resource tax in promoting the optimal allocation of resources. The implementation of the resource tax under the ad valorem method can form an automatic adjustment mechanism linked with the resource price. Therefore, it can promote fair competition among enterprises, promote the overall conservation and recycling of resources, and improve the efficiency of resource allocation through the appropriate and effective adjustment of the level of resource differential income.
Secondly, standardize from the source and strengthen supervision and management to protect the sustainable development of domestic resource development and utilization; prevent mining enterprises from "mining the rich and discarding the poor", cause waste of mineral resources, and promote rare earth mining enterprises to fully exploit mineral resources, so as to improve the benefits of the mine; increase the cost of resource exploitation, eliminate backward enterprises, and promote strong and strong combination and technology. Innovate and promote industrial upgrading.
Third, the rare earth resource tax will be changed from quantitative to pricing in the future, which can play a role of going with the market, and the sensitivity of resource tax regulation will increase relatively. In the future, the price of rare earth will be more determined by the market. Under the current situation of general oversupply of rare earth, it is difficult to increase the price of rare earth even if the resource tax rate is increased; on the contrary, under the condition of oversupply, it is difficult to reduce the price of rare earth even if the resource tax burden is reduced.
In recent years, some local governments have set up complicated miscellaneous taxes, which has increased the burden of rare earth enterprises. According to the economic reference, the resource tax rate has always been set by the local government, especially in the southern provinces where heavy rare earth is the main resource. Taking Jiangxi as an example, the resource tax burden is 36000 yuan / ton, while Guangxi is only 6000 yuan / ton. The resource tax reform will narrow this gap and make the market environment more fair.
Objectively speaking, the reform and adjustment of China's tax system, to varying degrees, aims to realize the competition of rare earth enterprises in China, including state-owned enterprises, collective enterprises, private enterprises, joint-stock enterprises, etc., towards the same level of tax burden, and gradually achieve the goal of fair tax burden, so as to promote all kinds of enterprises to participate in fair competition. Because fair tax burden is directly proportional to fair competition, only the closer the tax burden is to fair, the closer the competition will be to fair.
For rare earth, due to the long-term internal competition in China, the price discourse power is not high. By increasing the resource tax rate, the price discourse power can be appropriately increased. For example, the resource tax can increase the domestic and international market prices of rare earth from the source, so that it can reflect the scarcity of resources and the environmental cost of mining, and change the relationship between supply and demand through the rise of prices, effectively reducing smuggling and other countries' purchase and hoarding of rare earth. (from China nonferrous metals)