China Increases Rare Earth Tax Rate
Source: CRI, Wei Tong (4/11/11)
"Tax rate of mined light rare earths will increase by US$9 per ton. Since 2005, China's rare earth production has exceeded 100,000 tons in five consecutive years."
A statement jointly issued by the Ministry of Finance and the State Administration of Taxation shows the tax rate of mined light rare earths will increase to 60 yuan, or around US$9 per ton, while that of medium and heavy rare earths is set at 30 yuan, or $4.5 dollars per ton.
Wang Caifeng, a senior expert from China's rare earth industry, lauds the tax rate increase, saying it can curb the excessive exploitation of rare earth and place mining under control so as to conserve resources.
The tax increase will spur the rare earths processing companies to lift up production costs.
China's rare earth resources account for 36% of the world's total amount. And on average, China produces 97% of rare earth for the global market. Since 2005, China's rare earth production has exceeded 100,000 tons in five consecutive years. However, continuous uncontrolled and illegitimate mining has led to a great loss of the resources and severe environmental degradation.