Also affected by rare earths tax reform

Rare earth should in future in China no longer on the amount, be taxed but for the price. Experts fear by a further increase in the illegal trade in the coveted raw materials.

In all of China's resources tax should be massively increased. In light rare earth elements-from northern China to the will of the government, a tax of 22 Percent of maturing, in heavy rare earth elements from southern China, a tax of 35 Percent of.

The main reason for this reform, China's losses from litigation with the World Trade Organization (WTO) and the partial removal of tariffs on rare earths. Beijing aims to promote the reform on the one hand, the centralization of resources for large manufacturing companies, and by restricting the export of large quantities of rare earths.

The WTO has in 2011 decided, that China's restrictions on exports of nine raw materials contrary to the provisions of the WTO. Among commodities, it was bauxite, What, Flussspat, Magnesium, Mangan, Siliciummetall, Silicon carbide, yellow phosphorus and zinc. The provisions for the export of rare earths, Tungsten and molybdenum were subsequently affected by the same decision.

The tax reform in the rare earth is considered a strategic focus on the regulation of China's resources. "If in the rare earths the control not to the quantity, but will be charged for the price, the market can play a greater role ", declared a Responsible. "The resource tax rates have long been established by local governments. In Jiangxi Province, the tax rate for rare earths is 36.000 Yuan (about 4700 Euro) pro Tonne, in the autonomous region of Guangxi, however, only 6000 Yuan (about 780 Euro) pro Tonne. The reform would make the market competition fair. "

The illegal mining and trading of rare earths is widely used in China. Many experts fear, that a strong increase in the resources tax will fuel the illegal business of rare earths further, as well as righteous company could choose to go underground, to escape the high tax burden.

http://german.china.org.cn/business/txt/2014-11/21/content_34116385.htm

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