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MoF propose increase natural resources tax

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The Vietnam Ministry of Finance propose the Standing Committee of the National Assembly revise natural  resource tax. Expected tax rate will be increased to tighten the management and exploitation of natural resources and increase revenue for the state budget. The tax rate expected to apply from January 1, 2016.

The new natural resource tax rate as follows: Metallic minerals (excluding gold and rare earth) tax rate will increase from 1-5% to 10-30%; Non-metallic minerals increased tax rate from 1-5% to 5-10%. Gem resource group tax rate from 3-8will rise to 5-20%; Coal tax rate from 1-3% to 5-20%. Natural gas tax rate will rise from 0-10% to 6-25%.

Expected tax rates applicable from 1.1.2016 with some metallic minerals increased by 2% as copper rose from 13 to 15%; silver, tin increased from 10 to 12%; manganese up 3% from 11 to 14%; other minerals such as lead, zinc increased from 10 to 15% ...The non-metallic mineral products also increased: sand increase from 11 to 15%; granite, soil increase from 10-15%; white marble increase from 9-15%; coal increase from 7 to 10% with anthracite mines, mining and from 9-12% with opencast anthracite, brown coal, fat coal. Tax rate with natural water for electricity production increased from 4% to 5%; Natural mineral water, bottled water, boxes ... increased by 8-10%.

According to Mr. Pham Dinh Thi, Tax Policy Department, Ministry of Finance, the tax increase resources is "to strengthen the management of mineral resources, balancing the budget revenues due to mineral export tax is declining." Many mining companies have reacted to the increased tax rate near the ceiling with many minerals (average increase of 2-3%) and that it is the policy for artisanal budget. According to Mr. Vu Hong, deputy general manager Nui Phao Mining and Mineral processing Company, tax increases is only make difficult for legitimate mineral exploit businesses, encouraged illegal mineral exploit businesses and increased costs business. Mr. Evan Spenser, CEO of Ban Phuc Nickel Mines Ltd.  said enterprises invested 130 million USD in Vietnam since 2007. However, this time the resource tax, environmental protection fees increased. Total taxation of companies has increased 218% in the period 2007- 2014, taxes payable increased by $ 76 million.