PHYSICALS - China extends resources tax reform to base metals concentrates

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Meimei Qinmeimei.qin@fastmarkets.com+442072642479

London 16/06/2016 - China will extend its resource tax reforms to non-ferrous metals ores and concentrates - among other commodities - in July, according to a statement posted on the State Administration of Taxation's official website.

As of July 1, the reforms will shift China's resource taxation to one directed at taxing domestically mined base metal ores and concentrates based on sales values rather than sales volumes, which is the case currently.

The resource tax for copper ore will be set at 2-8 percent of the value of the copper concentrates. Similarly, for nickel, tin, lead and zinc ores, the tax rates will be in the range of 2-6 percent of their concentrates values.

By contrast, the tax rate for bauxite will be 3-9 percent of the value of its crude ore.

Provincial governments will be able to apply to define the specific tax rate to charge in these ranges but the final say will still be held by the central government.

The government's intention is simplify the system and not to increase businesses' tax burden, it added.

"Previously, there was a huge range - it could be from 0.4 yuan to 60 yuan per tonne - but now it will not apply for ore volumes but will apply to... sales revenue for concentrates," a concentrate trading source in the country told FastMarkets.

The statement was echoed by State Council guidelines posted on its website on Thursday - the government plans to accelerate the resource tax reform across non-ferrous sectors.


(Additional reporting by Archie Hunter, editing by Mark Shaw)



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