Development of Methods for Determining Differentiated Rates of Mineral Extraction Tax in Recovery of Solid Commercial Components from Technogenic and Natural Fields

Abstract

Background: The article presents differential methods to determine ad valorem Mineral Extraction Tax (MET) rates for commercial components extracted from technogenic raw materials and from secondary mineral resources. Methods: Proposed objectives include restrictions on the minimum level of MET rates. MET is calculated by reference to stock exchange prices for finished products in formulas 1 and 2. This tax is calculated relying on the estimated value of extracted minerals in formulas 4 and 5. The forecasted MET potential is estimated as present value of expected payments to the budgets of the RF budget system. Findings: Increasing the complexity of the use of mineral resources through the development of state regulation of economic measures aimed at stimulating subsoil usage involves determining the optimal ad valorem tax rates on mining operations, which provide cost-effectiveness of the investment project organization engaged in the development of technogenic deposits. For this purpose, the study has developed and scientifically validated methods in terms of mining rent, where mining-and-geological (mill head grade) and technological (the value of throughout recovery of the component to the finished product) criteria have been highlighted in its structure which are prerequisite to establish economically justified level of tax exemptions of mineral extraction tax. Frequency of revision of MET rates is still debatable, whether it will be a period of development of the deposit or another period of imposing the tax rate. Improvements: The presented methods can be used in working out the directions of Russian tax system development, as well as the implementation of regional investment projects aimed at developing, in the first place, technogenic deposits under a separate license.