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The Ministry of Finance and the State Administration of Taxation held a press conference in Beijing on the 30th to explain the details of reforms and respond to social concerns.
China's resource tax has been introduced for more than 30 years, and its revenue in 2015 was 103.5 billion yuan. The current system is hampered by the fact that the majority of resource items are subject to specific quota collection, the scope of collection is limited to mineral products and salt, there are a large number of toll fund projects, and the concentration of taxation rights, etc., and are no longer adapted to the needs of economic system reform and the "two-type" social construction. The reform is imminent.
Wang Jianfan, Director of the Department of Taxation of the Ministry of Finance, said that the reform has four core elements:
——To comprehensively push forward the reform of the ad valorem taxation of resource taxes, the 21 new tariff lines for iron ore, gold, graphite, and sea salt have been changed from fixed quotas to fixed quotas, and other metals and mines that have not been listed have been added. Most of the other non-metallic minerals are also subject to ad valorem.
However, starting from the principle of facilitating collection and management, a certain amount of mineral products such as clay, sand and gravel, which are scattered in operation and difficult to control, are still subject to specific quotas.
——The scope of resource tax collection has been expanded. Hebei Province has taken the lead in carrying out taxation reform of water resource fees, and has gradually pushed to the rest of the country on the basis of experience gained from pilots. Natural resources such as forests, pastures and beaches will also gradually be included in the scope of expropriation.
- The reform will comprehensively clear the toll fund that involves mineral resources. We will reduce the compensation rate for all mineral resources resources to zero, stop collecting price adjustment funds, and ban local charging fund projects that are illegally set up for mineral resources.
- The central authority will decentralize some places. The tax rate of mineral products is regulated by the central government, but the provincial government is empowered to propose specific tax rates for major taxable products based on factors such as resource endowments and corporate affordability.
Reasonably set tax preferences. For the qualified mining resources, the resources tax will be reduced by 50% and 30% respectively. To encourage the use of low-grade ore, waste rock, tailings, waste residue, waste water, waste gas and other extracted mineral products, the provincial government is authorized to determine whether to reduce taxes or exempt from taxes, so that local governments can accurately implement measures according to local conditions.
Wang Jianfan revealed that after the introduction of this reform, the resource tax legislation will be included in the agenda. The taxation and taxation department will draft resource tax laws on the basis of further evaluation of reforms and submit them to the National People's Congress for consideration.
From July 1, China will comprehensively promote resource tax reform
Starting from July 1 this year, China will comprehensively implement resource tax reforms, fully implement ad valorem tariffs, comprehensively clean up fee collection funds, launch water resources tax pilots, and demonstrate to the world our country’s determination to develop a green economy.