Abstract
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.
Highlights
Mineral resources are the material basis for developing the national economy and ensuring national security
Among all the taxes and fees paid by mining companies, corporate income tax, value-added tax (VAT) or similar to VAT, such as goods and service tax in Australia, state turnover tax in Brazil, and royalty are the three most important taxes, which account for more than 50% of the total tax burden
The high value-added tax is the main reason for the heavy tax burden of mining companies in China, and the unreasonable taxes and fees lead to the lack of competitiveness of China's metallurgical mining companies
Summary
Mineral resources are the material basis for developing the national economy and ensuring national security. Mining industry is an important basic industry in the development of national economy. It is directly engaged in the development and utilization of mineral resources. The development of mining industry plays an important role in the development of national economy. The sustainable development of the iron ore industry is facing severe challenges. At this time, the problem of excessive tax burden of iron ore companies is more obvious, and the miners appeal to the government to reduce the tax burden on iron ore companies
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
