Research On The System Of Mineral Resource Taxation And Fees

Mining is an infrastructure industry of national economy. As an important part of natural resources, mineral resources are the basic production and living materials for human survival and development. Although the gross mineral resources are abundant in China, the resources per capita are less than half the world's average, and are reducing at a surprising rate currently, besides many mineral resources are highly dependent on foreign countries and are not used effectively. With the rapid economic growth of china in the 21st century, some potential problems occurred gradually such as weak taxes on resources which lead to the lost of its adjustment effect, the relative lower price on resources due to the lower taxes on resources which makes against adopting the advantage technology in resources consumption enterprises,environment issues due to mineral resources exploitation which needs the way of taxes to deal with, and the imperfect mineral title market with the unfair and nonstandard charges on mineral titles. With the global recession from 2008, the demand and price of mineral resources decreased largely, and the mining industry is at low tide. Under this basement of economy circumstance, the institution on taxation and fees of mining resources faces three main problems to be solved:First, adjusting related policies including taxation and fees policies of mineral resources to protect the country's property interests to mineral resources and promote the transformation of economic development mode in China; Second, establishing new taxation and fees system to realize the internalization of external cost in the mineral resources exploration,then solving environment issues in the development and exploration of mineral resources, and realizing sustainable economic development; Third, promoting system reform of mineral titles to speed up the building of mineral title market and improve the system of charge on mineral titles. This paper tries to make some exploration on the above problems from the theoretical and practical aspects.The paper includes eight chapters divided into two parts:theoretical analysis and institutional analysis. First is the introduction. Chapterâ… -â…¡is the theoretical analysis. Chapterâ…¢-â…¥is the institutional analysis, in which chapterâ…¢is institution transition, chapterâ…£-â…¥is institution arrangement. Chapterâ…§is the conclusion and prospect.The Introduction chapter analyzes the purpose and significance of this research, reviews the related domestic and foreign literatures, introduces the research methods and the Structure of this paper, and points out the possible contributions and deficiencies of the paper.Chapterâ… is theoretical analysis:economic analysis of mineral resources. This chapter makes an economic analysis of mineral resources to establish the theoretical basis for the taxation and fees of mineral resources. The first part is general economic analysis of mineral resources including the introduction of classification, effects, common characteristics of mineral resources in China and the method of resources evaluation. The second part is the introduction of the supply, demand and structure of mineral resource market; finally, the writer establishes the theoretical bases of taxation and fees of mineral resources based on the analysis of natural and social properties of natural resource.Chapterâ…¡introduces the operating mechanism of taxation and fees of mineral resources including imposition mechanism and effect mechanism. In the imposition mechanism, the relevant stakeholders in the taxation and fees of mineral resources and their relations are introduced, as well as taxation mechanism of different types of taxes are introduced. The effect mechanism of taxation and fees of mineral resources also include two parts:micro-economic effect and macro-economic effect. In micro-effect part, the writer makes mathematical analysis to the influences of taxes and fees of mineral resources in the markets of different structures or with different taxation means to the path of exploitation quantity, analyzes the burden and shift of taxes and fees of mineral resources from different sides of taxation objects, market structures taxation methods and so on; In macro-effect part, the writer analyzes the relationship between the taxation and fees of mineral resources and economic growth, and transformation of economic growth, and the economic cycle.Chapterâ…¢analyzes the institutional transition of taxation and fee of mineral resources in China. This part analyzes Specifically the taxation and fees system of mineral resources at different period since Xia Dynasty, especially the reasons for free use of mineral resources in China since the founding of People's Republic of China and the process of institutional transition of taxation and fees of mineral resources since the reform and opening-up. This part makes a detailed analysis to the status of taxation and fees of mineral resources in our country, and points out the problems in general and specific taxation and fees system.Chapterâ…£is general institutional arrangement of taxation and fees of mineral resources. Based on the comparison of taxation and fees of mineral resources between foreign countries and our country, the writer draws the experiences which can be used in China for reference. This part explains the four principles:efficiency, equity, sustainability and proper distribution, which should be kept in the institutional arrangement of taxation and fees of mineral resources; Then puts forward the general conception of taxation and fees system of mineral resources including royalty, charges on mineral titles, special gain levy, profit regulation fund and environmental tax of mineral resources, besides, the writer Proposed the specific implementation steps to realize the conception of mineral resources.Chapterâ…¤is institutional arrangement of taxation and fees subsystem of mineral resources in China. Based on the comparison of institutional arrangements in different countries and the general conception of taxation and fees system of mineral resources, the writer makes institutional arrangement of taxation and fees subsystems. The aim of mineral resources royalty is protecting the state's ownership of mineral resources and optimizing intergenerational allocation of mineral resources. The writer divides royalty of our country into a system including basic royalty, dominant royalty and advance royalty according to the international operation of royalty, resources rent royalty and bonus system. In order to settle mining market failure problems caused by mining profit periodicity, the writer advances an institutional system consisting of income adjustment taxation and income adjustment subsidy taking the principles of designing depletion allowance for reference. Environmental tax of mineral resources is a good way to internalize intragenerational external costs, many countries have operated environmental tax to reduce environment damages in mining, and our government can arrange the environmental taxation institution taking these countries' practices as reference. The reason for special gain levy is the market failure problem caused by extra profit of international goods which is generated from international monopoly and speculation and so on. Therefore, our government can regulate special gain levy system using other countries' experiences of "windfall tax" as reference. The aim of the charges on mineral titles is market access, state's investment recovery, accelerating exploration and exploitation of mineral resources and so on. According to the development of market economy, reform present system of charges on mineral titles consisting of both deepening the transfer mode of mineral titles and constructing a new one which only includes usufruct outlay of mineral titles.Chapter VI is the promotion and coordination of taxation and fees system reform of China's mining industry. The writer evaluates China's taxation and fees system reform of mining industry from industry perspective and institutional perspective, and regards mining industry belonging to the first industry rather than the second industry in the original view. From the comparison of taxes and fees of mining industry in different countries, the writer believes that the present taxes and fees of our country is moderate on the whole, but taxation and fees of mineral resources are too low and general taxes and fees are too high. So it is necessary to reduce the general taxes and fees and promote taxation and fees reform taking other countries' experiences of value added tax, income tax, tariff and other general taxation and fees for reference. Based on the analysis of history, status and problems of mining industry system in China, according to the development of market economy, the writer puts forward the suggestions of reforming mining industry system and mineral title market.Chapter VII is conclusion and prospect. The writer introduces the main conclusions of the text and makes some prospects of researches in the future.This paper tries to construct a set of taxation and fees system of mineral resources by various research methods including theory analysis and practice analysis, macro analysis and micro analysis, history analysis and status analysis, experience analysis and fact analysis, based on the theory of taxation and fees of mineral resources, and the analysis of history and status of mineral resources in China and the experiences of taxation and fees system of mineral resources in foreign countries.The possible contributions are embodied in the followings:1.Multidimensional ViewFrom the perspectives of resources attribute, operation mechanism, tax applicability and study areas, this paper makes a comprehensive research on taxation and fees of mineral resources with the comprehensive application of theoretical economics, resources economics and property economics. (1) Mineral resources have double attributes of nature and society. From economic perspective of natural attribute, the writer points out the problems and reform path of taxation and fees of mineral resources in China, as well as various solutions of market failure problems, such as negative externalities From property perspective of social attribute, the writer suggests to regulate two mineral title markets, carry out compensation use and compensation access of mineral resources.(2) The operation mechanism of taxation and fees includes two parts of imposition mechanism and effect mechanism. The writer analyzes the taxation mechanism of different resources. The effect mechanism analysis consists of two aspects of micro and macro, the former is the influences of different taxation in markets of various structures to mining path and the shift and incidence of taxes and fees, the latter is the effect of economic growth, economic growth mode and economic periodicity of taxation and fees of mineral resources.(3) The taxes and fees of mining industry can be divided into special taxes and fees (i.e. taxation and fees of mineral resources) and general taxation and fees according to their applicability. Based on the analysis of taxation and fees of mineral resources which are the most important subjects but not all in this paper, the writer evaluates the taxation and fees of mining industry from the view of industry and suggests some measures to improve general taxation and fees.(4) The Study area of taxation and fees of mineral resources includes domestic and international aspects. The writer makes researches on the system reform of taxation and fees of mining industry basing on the fact of China and taking foreign countries' experiences for reference.2. The in-depth of theory analysis(1) The in-depth of mathematical model. The text makes development to mathematical model in two aspects.Firstly, extension of optimizing mining path model of mineral resources. The writer adds taxation and fees to optimize mining path model of mineral resources in markets of different structures, and draw the micro effects of different taxation modes in markets of different structures.Secondly, extension of endogenous growth model of nonrenewable resources. By adding government to the four-sector endogenous growth model including nonrenewable resources constructed by Peng Shuijun et al (2005). the writer establishes five-sector endogenous growth model to analyze the effect of taxation and fee system(including collection and use) arrangement to stable and balance economic growth.(2) The explanation of social attributes of mineral resources. The writer considers the social attributes of mineral resources as the theory basis for further analysis to taxation and fees of mineral resources, such as foundation, value multiplicity, income distribution complexity, negative externality and so on.(3) The correction to mining industrial attributes. The writer believes that the general taxes and fees of mining industry are too heavy due to the mistake that mining industry belongs to the second industry. So it's necessary to correct the industrial property of mining and reform value added tax, income tax, tariff and other general taxation and fees system of mining industry.3.Systematic and Applicable Features of Institutional Arrangements(1) Putting forward the general conception of taxation and fees system of mineral resources. The writer establishes a set of taxation and fees system of mineral resources including royalty, environmental tax of mineral resources, profit regulation fund, special gain levy and charges on mineral titles based on the other countries' experiences of taxation and fees system designing and the fact of China.(2) Proposing the systematic arrangement of royalty. The writer establishes a royalty system consisting of basic royalty, dominant royalty and advance royalty taking foreign countries' experiences of royalty, resources rent royalty and bonus for reference.(3) Putting forward the conception of profit regulation fund. In order to solve the market failure based mining at different stages, the writer proposes to establish profit regulation fund consisting of profit regulation tax and profit regulation subsidy according to the profit and output of the mine.