CISA report heavy tax duty in iron ore mining to ministries and studying solutions

Mr Zhang Changfu secretary general of CISA said that China Iron and Steel Association has submitted proposal on iron ore mining taxes this April in meetings with multiple ministries including State Council, Ministry of National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Commerce, Ministry of Environmental Protection, State owned Assets Supervision and Administration Commission etc.

Mr Zhang said that Chinese domestic iron ore miners pay 12 taxes and 13 fess in general which amounts to approximately 25% in sales income in 2012, some miners which lead the industry with the worst taxes and dues at 35.42% paid around CNY 200 in each tonne of concentrates they sold adding this is sharply higher from 4% to 5% in mining companies in Australia and Brazil and 6% in other industries in China.

He said that the heavy structural taxes have significantly impact operation in Chinese domestic iron ore mines, make iron ore price deviate from a normal range and hurt steelmaking profitability.

He added that resources tax in iron ore mining has doubled over the past years. In the H2 of the year, the Association will continue reflecting financial and tax appeals from the industry and study solutions to heavy duties in Chinese iron ore mining industry.