China brings in mining tax

 China is bringing in its own mining tax.

According to the country’s leaders, the tax is meant to raise funds for poor areas that produce the majority of China’s minerals and oil and gas, the Sydney Morning Herald reports.

The tax will come into effect from 1 November this year, and applies to crude oil, natural gas, metals, salt, and importantly, rare earths, of which China controls more than 90% of the world’s supply.

Oil and gas will have a tax of between five and ten per cent of its sale value.

It is part of a wider move which saw a tax on oil production in China’s northwestern Xinjiang region.

These taxes come after China attacked Australia’s mining tax, claiming that it is designed to hurt China.

Following Western Australian premier Colin Barnett visit to China, he said the country — the biggest buyer of Australia’s iron ore and coal — was "certainly unhappy" about the federal government taxing the resources.

“China sees that as a tax directed at them, and are extremely resentful about that,” he said.

“They certainly are very angry over the mining tax and they raised that repeatedly at the meetings over the last few days.”

 

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