A Preliminary Study On The New Mineral Taxes System And Its Econometric Model In China

The current mineral taxation system composes of the taxes just for mineral industry and for general industry, the former includes resources tax, Compensation Fees for Mineral Resources, Mineral Royalty on oil and gas, special taxation on oil income etc; the later mainly consists of value-added tax and income tax. Overlapping tax on fixed investment in mineral industry has disadvantage on mineral investment, while Rigid rate of Add-value Tax increases mineral marginal Industrial index which reduces mineral resources reserves by human factors,so the mineral resources can't be used efficient by this kind of disguised way of waste. The Add-value Tax has been still the heaviest burden on mineral industry from the past to now which up to 60%.Theoretically, Add-value Tax effects mineral resources tax which can't regulate the organization and the structure of mineral industry functionally. The reformation of Add-value Tax has been implemented progressively, and the reformation of mineral taxation system is brewing, so it is the right time for the reformation of Add-value Tax to be done in mineral industry.In this study, we boldly put forward the Scheme by combine the VAT reform and mineral tax system reform together on the basis of analysis the relationship between the theories and the mineral tax system. We explored and demonstrated the Scheme in many aspects and got satisfied result------China new mineral taxation system: structure and econometric model. the suboptimal but steady reformation Scheme has been recommended: revising mineral resource law , reforming the pattern of value-added tax, adjusting the types of mineral taxes, measurement basis and the rates which composed of Unit-based, Value-based and Profit-based to form a integrated and solid collection pattern. The new tax construction included consume value-added tax, resource tax, rights and interests, mineral resource exploit remit(punish) money, environment tax, fund of change products, safety fund and fun of land re-cultivate. It is the first time to combine the regulation of mineral resources and mineral tax system, so as to provide an opportunity to improve the management of mineral resources as well as the necessary condition for capitalization of mineral resources. The concrete scheme is given, linking the Reserves consumption closely to resource taxation; connecting the full use (waste) of the resources with tax exemption (penalty); linking the royalty with the profit and risk of the mineral exploration and development investment.In this study, some tools were used to quantitatively study mineral tax system ,such as effective tax rate, economic risk, investment cycle (the economic cycle) of the macro and micro economic indicators to quantitative study of the mining taxes and fees. We selected the data of listed mining company and compared the effective tax rates between the mineral and non-mineral enterprises. The author comes to the conclusion that the effective tax rate of mineral enterprises was significantly higher than that of non-mineral enterprises when minerals prices were low, and vice verse. Currently, the effective tax rate of mineral enterprises is lower 15-26 percent than that of the non-mineral enterprises. It is the most important parameter is that the quantity of risk investment and the rate of return of mineral industry.The computing result of the new model was good: there was great differential income gap between the different ores or zones; differential incomes were decreased systematically from Coal, oil and gas to other solid minerals .the structure of mineral tax system had been changed fundamentally: resources tax came to absolute predominance in the first echelon tax category which accounting for 50% or more. Value-added tax, income tax and royalty became the second echelon tax category which accounting for 25-40%. Resource tax was the most sensitive index to the effective tax rates, and its measure coefficient was the most important parameters.The new mineral tax system and the econometric model should be further proofed, tested and improved.