China to increase rare earth tax from April - Xinhua

06 April 2011 | 04:07 Code : 20547 Geoscience events
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China will increase a tax on rare earths from April 1, the official Xinhua News Agency said....

China will increase a tax on rare earths from April 1, the official Xinhua News Agency said on Thursday.The State Administration of Taxation website carried a local media report, saying the resource tax would be raised to 30-60 yuan per tonne, depending on the type of rare earth mineral, a substantial increase from the current level of 0.5-3 yuan per tonne.The Xinhua report, citing a statement issued jointly by the Ministry of Finance and the State Administration of Taxation, said that the tax rate for mined light rare earth is 60 yuan ($9.1) per tonne and the rate for medium and heavy rare earth is 30 yuan per tonne.Zhang Zhong, general manager of Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co , the country’s top rare earth producer, said the new tax would increase the company’s production costs by about 720 million yuan ($109.8 million) this year.China, the world’s dominant producer of rare earths, used in a wide range of products from precision-guided weapons to hybrid car batteries and tablet computers, has restricted exports, forcing international prices up dramatically since July last year. ($1 = 6.558 yuan) (Reporting by Polly Yam;; Editing by Chris Lewis and Ken Wills)


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