Reform And Construction On China’s Mineral Resources’ Tax And Fee System

As mineral resources have played a very important role in our country’s economic development and been a much of use resource support for 32 years,our mineral reserve has been depleted at an alarming rate.To cope with that situation,we have to enforce our national power to deal with the market failure.After studying the researches conducted on mineral resources’ tax and fee system in our country,we can reveal our problems in the system,analyse the causes and then come up with a plan to modify the old system so it can deal with the new situation in our economy.Our tax and fee system includes mineral tax,compensation fee for mineral resources,charges of using the exploration and mining rights,price for the exploration and mining rights and special oil gain premium.Our system is based on the rent theory,so at the beginning mineral tax is designed to marrow down the big difference in profits among mineral companies.Compensation fee is aimed at the absolute land rent of mineral resources.Along with the development of the mineral resources’ value theory,resource depletion theory and externality theory,the rent theory showed its shortcomings and our tax fee system started to be confused by the change of basic theories.Flaws in our system’s design plus compromises during specific rules’ execution make our tax and fee system much weaker than supposed to be.On the other hand,Royalty is a much more useful way to achieve the goals set by the tax and fee system.As the ownership of mineral resources,government should fulfill its duty from the angle of Civil Law instead of a superior status as country managers.Royalty and bonus can gather the profits in land rent,Charges for using the exploration and mining fight is aimed at gaining mining right rent.Resource rent tax can harmony the difference in profits.With transfer fee and eco-tax,the system can be rebuilt and continue making contributions to our development.