Iron ore resources tax reform is a big obstacle

Since 2002, the iron ore resources industry has requirements to adjust the resource tax standards, but there are many difficulties, to carry out the adjustment needs to solve a number of problems.

The first is how to reduce the tax burden of iron mining enterprises.

At present, in addition to the value-added tax and income tax of general industrial enterprises, China also levies resource tax of fixed quantity, mining resource compensation fee of fixed price, exploitation fee of exploration right, exploitation fee of mining right and a total of more than 25 kinds of taxes, fees and funds collected by local governments.At present, the overall tax burden rate of iron mining enterprises has reached more than 25%, mainly because of the excessive tax burden imposed around the paid use of iron mining resources.

Iron ore resource tax reform, can change the resources tax standard does not change with iron mining conditions and the present situation of the adjustment, but the prime function of national fiscal and taxation policy is still in the nation's organizing financial income and national tax may not fell sharply, before and after the tax reform by iron ore resource tax reform iron mining enterprises to reduce the tax burden has certain difficulty.Therefore, iron ore resource tax reform should formulate a feasible plan, and choose the appropriate time to carry out.

Second, the expected effect of "clearing fees and raising taxes" may affect the progress of reform.

Reform of the resource tax will be difficult, not least because of the various fees in the mining sector.The policy direction of resource tax reform is very clear, that is, to further promote the "clearing fees and establishing taxes", straighten out the relationship between resource taxes and fees.Iron mine resources are a key point of local taxation, and some local governments impose excessive tax, resulting in excessive burden on mining enterprises.The effect of clearing charges determines the success or failure of the reform of iron ore resource tax and the survival of iron mining enterprises.

However, as the "fee clearing and tax raising" has affected the vested interests of some departments and local governments, if new fee charging projects appear, the actual burden of enterprises may be greater than before the tax reform, leading to the opposite effect of resource tax reform.Therefore, standardizing the charging behavior is one of the primary issues facing the reform of iron ore resource tax.

The third is how to restrain local governments' discretion.

According to the requirements of the state on the reform of resource tax, the reform of iron ore resource tax must be carried out simultaneously with the reform of tax and fees, and the key is that the implementation of the tax reform must take into account the balance of interests of all parties.From the resource tax reform of resource type, resource about the benefits of growth and cancel the charge loss, but in order to ensure fiscal income, local governments is likely to be targeted in tax rates set high taxes, such as the coal resource tax rate was 2% ~ 10%, and formulate concrete applicable tax rate by provincial taxation department.If local governments continue to implement high tax rates, it will not only fail to reflect the advantages of resource tax reform, but also hurt the interests of the steel industry and challenge the authority of the central government.

Fourth, how to reflect the differences in iron ore resource endowments.

At present, in order to reflect the conditions of iron ore resources, the iron ore resource tax will be assessed for all iron mines into grades, from the amount of levy, according to the number of mines to pay the resource tax, resulting in mining enterprises "love the poor and rich", rich ore is mined arbitrarily, the use of resources is very unreasonable.Instead the AD valorem duty, resource subject to price, high price, tax, price low, less tax, make tax by increasing fiscal revenue and adjusting resources differential income tax commonly, to use the tax revenue lever to adjust action, service for the national economic policy goals and set up special taxes, is advantageous to the iron mining industry to save resources, protect the environment.

But if tax rates cannot be applied in a clear way, this creates a flaw.First, it is difficult to reflect the value of resources. The nature of resource tax is differential rent, which is far from the price-based tax. The amount of resource tax should reflect the value of resources rather than the value of resource products.There is no obvious difference between the market value of iron ore extracted from the iron ore with the worst resource conditions and the iron ore concentrate with the best resource conditions. However, their mining costs can be several times different, which leads to different profit levels, indicating that the value of the resource itself is different.Second, it is unfair to levy the same or similar tax on iron ore resources with different endowment conditions.Resource tax has the nature of differential rent, that is, more taxes are levied on the high-quality resources with convenient transportation, good occurrence conditions, high grade and easy to pick and choose.The low quality resources with remote transportation, poor occurrence conditions, low grade and difficulty in mining and selection are taxed less, so as to reduce the uneven pain and happiness of development enterprises caused by the difference between the advantages and disadvantages of resources, promote fair competition among mining rights holders, and make the development of mineral resources reasonable and effective.Recently, the national finance and tax departments have realized resource AD valorem duty issue, in the implementation of rare earths, tungsten, molybdenum resource QingFei state tax, AD valorem duty, in the reform on the applicable tax rate has been clear: the light rare earth area in accordance with the different applicable tax rate, among them, the Inner Mongolia is 11.5%, 9.5% in sichuan, shandong is 7.5%, the heavy rare earth resource tax applicable tax rate is 27%, actually set up 4 shift rate.This shows that "resource tax should reflect the advantages and disadvantages of resources" principle has been accepted by the relevant departments of the state.