China is considering raising taxes on resource exploitation as
it seeks to reduce over-consumption, Ma Kai, China's top economic
planner, told Monday's China Business News.
Ma derided the current taxation rate, based on the amount of
resources exploited, as "obviously too low."
"While each ton of crude oil is sold at more than 3,000 yuan
(US$375) in China, the cost in tax is only 14 to 30 yuan per ton,"
Ma revealed.
Over the next five years, central authorities will increase the
rate of tax reform here, wielding a powerful tool to ensure maximum
resource efficiency.
The process will be a gradual one, admitted Ma, highlighting the
need for an incremental reform system, allowing for differing tax
rates for differing grades of ores whilst also avoiding damage or
inconvenience to consumers or industries.
Illustrating the disparity, Ma highlighted that while China's
GDP accounted for 5.5 percent of the world economy last year, its
energy consumption stood at 2.46 billion tons of standard coal, or
around 15 percent of the global total.
In total, China used 388 million tons of steel last year and
1.24 billion tons of cement, or 30 percent and 54 percent of the
world's total respectively.
The 130,000 mining enterprises that exist nationwide have had to
cover little or no costs to obtain mining rights, leading to a low
threshold for mining which has directly lead to criminal safety
procedures.
Last November, China instituted a fee for coal prospecting and
mining ventures in eight major coal-producing provinces and
regions.
(Xinhua News Agency March 20, 2007)