Ministry tables mineral tax hike
Ministry tables mineral tax hike
The Finance Ministry is calling for comments on a proposal to raise the tax on mining iron ore, titanium, gold, copper and several other minerals by 3 to 10 percentage points.
The proposed increase is intended to bring in an extra VND508.6 billion (US$24 million) a year in tax revenue.
The ministry said the higher tax was aimed at discouraging exploitation of un-recycleable natural resources.
It added that the current taxes on 13 kinds of metal minerals were 10-15 per cent. Tax collection from mining in the past four years reached VND19.4 trillion ($923.8 million), VND26 trillion, ($1.23 billion) VND39.2 trillion ($1.86 billion) and VND41.3 trillion ($1.96 billion) respectively.
However, the ministry believed the current taxes should be revised to better reflect the higher added value gained from the use of modern technology.
Accordingly, tax on iron ore would be increased to 20 per cent from the current 10 per cent. The country had reserves of around 960 million tonnes and the yearly output was 3.5 million tonnes.
The tax increase on iron was expected to bring in VND320.3 billion ($15.2 million) a year.
Tax on titanium exploitation was also proposed to increase to 20 per cent from the current 11 per cent. Titanium exploitation and exports have been mainly ore with low value.
The increased tax on titanium alone would add between VND38.7 billion ($1.8 million) and VND123.8 billion ($5.9 million) to the nation's coffers each year.
The ministry also asked for an increase in tax on gold from 15 per cent to the highest level of 25 per cent. Viet Nam has gold reserves of 154 tonnes.
It said technology used by domestic enterprises in gold mining and processing were not highly efficient, causing waste and harm to the environment.
The yearly tax collection revenue on gold would be VND348.3 billion, ($16.6 million) increasing by VND139.3 billion ($6.6 million).
Tax on copper was proposed to increase from 10 to 25 per cent.
If approved, the new tax would be in place from January 2014.
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