Completing policies to effectively manage mineral resources

Tax policies are flexibly adjusted to suit the situation, contributing to limiting the export of natural resources and raw minerals. Source: Internet

Resource policy shows its role

The Mineral Law stipulates that the State ensures that minerals are protected, exploited and used in a reasonable, economical and efficient manner. At the same time, regulations on state budget revenues from mineral activities include taxes according to the provisions of the law on taxes, fees and charges in accordance with the law and charges for granting mineral mining rights.

According to the assessment, each current revenue policy related to resources is associated with its own regulatory objective as a financial instrument, demonstrating the role of state ownership over national resources and performs the function of state management over the exploitation and use of natural resources of organizations and individuals.

Mineral mining revenues in recent years have been issued, amended and supplemented to ensure the harmonization of interests of the State, mining enterprises and localities in each period, in accordance with the policy of the Party and State on minerals. In particular, the regulation on minerals is economical and effective and has policies to encourage businesses to invest in deep processing, improving the value of resources.

In particular, the natural resource tax policy has played an important role in the state management of resource exploitation and use, contributing to raising awareness of organizations and individuals about the role of natural resources for the country's economic development, contributing to encouraging the economical and efficient exploitation and use of natural resources. In particular, to encourage the use of substitute materials in production and business, motivate the contributions of natural resource-exploiting organizations and individuals, and create additional sources of revenue for the state budget.

At the same time, the recent environmental protection tax policy has also contributed to limiting the production and consumption of goods causing environmental pollution, encouraging the production and use of environmentally friendly goods, reduce pollution at source, raise awareness of environmental protection of the whole society, meet requirements of sustainable development, and encourage economic development in association with reducing environmental pollution.

According to the Ministry of Finance, in order to encourage deep processing and to limit the export of minerals or export products with a total value of resources and minerals plus energy costs accounting for 51% of product cost or more, according to Law 106/2016/QH13, the export products are natural resources, minerals have not yet been processed into other products; the export products are goods processed from natural resources and minerals with the total cost of natural resources and minerals plus energy costs accounting for 51% or more of the product cost.

The input VAT amount will be refunded when these items are exported. In which, investment projects to exploit natural resources and minerals were licensed from July 1, 2016 or investment projects to manufacture commodity products in which the total value of natural resources and minerals plus energy costs accounting for 51% of the product cost or more under the investment project, which is not eligible for VAT refund, the investment project's non-deductible tax amount may be transferred to the next period according to law provisions.

The Ministry of Finance said that the above provisions have contributed to encouraging deep processing and limiting the export of minerals or export products with high mineral content.

According to the Ministry of Finance, tax policies are flexibly adjusted to suit the socio-economic situation of each period, contributing to limiting the export of natural resources and raw minerals and have been implemented uniformly and stably.

Strengthen management

Although policies, laws, regulations and guidance documents related to the management, exploitation and export of mineral resources are being effectively implemented by regulatory agencies, there are individuals, organizations and enterprises taking advantage of the policy to gain illegal profits.

In particular, to control the individuals, organizations and enterprises taking advantage of legal loopholes to do business, functional forces and sectors have closely coordinated with local authorities to strengthen inspection and effectively prevent the export of minerals and trade fraud for commodities in this field.

The Ministry of Finance has directed the General Department of Customs to inspect and take effective measures to prevent commercial fraud in mineral exports.

At the same time, review and issue guiding documents on the handling of seized minerals and means of transport. In particular, the Customs sector has developed plans to inspect, arrest, investigate and verify mining and mineral export activities of enterprises permitted for export.

Through checking, inspecting, and supervising, Customs found several enterprises declaring mineral products with high tax rates to minerals with low tax rates for the purpose of tax evasion as well as using improperly issued mining permits to export minerals.

In addition to the reason that enterprises are seeking profit, the other reason is that the current provision and exchange of information on mineral exploration, exploitation and processing between licensing agencies and tax and customs agencies is still abundant. There is limited centralized or public management information data on the portal, so that units can look up and see information for management. This leads to enterprises being able to exploit, process and export illegal minerals.

Therefore, in order to restore "order" and to bring a uniform and effective implementation of these regulations, the Ministry of Finance proposes that the agencies competent to grant mineral exploration and exploitation permits, when issuing licenses for exploration and exploitation, send them to the Customs and Tax offices for understanding.

At the same time, post publicly on the portal of the licensing authority so that other agencies can look up information for management.