China Plans Iron Ore Tax Cut - A Move to Protect its Iron Ore Supply
China, the largest producer, consumer and importer of iron ore, is considering cutting corporate taxes for domestic iron ore miners. In a bid to reduce input costs for the nation’s steel industry, promote domestic iron ore supply and help compete with international iron ore miners, the Ministry of Industry and Information Technology of China (MIIT), in association with the Ministry of Finance of China (MOF), has outlined a proposal to reduce the corporate tax rate by 10–15% from the current 25% for iron ore mining firms (China Securities Journal, 2012).
The report provides a synopsis of China's proposed iron ore tax cut in a bid to protect its domestic iron ore supply.
The report covers the need for the tax cut and the objectives that it plans to achieve.
It also covers other key developments, such as suspension of operations at 40% of Chinese iron ore mines and major deals in the iron ore industry.
Reasons to buy
Obtain an understanding of the proposed cut in corporate taxes payable by iron ore mining companies.
The proposed cut is likely to bring some relief to domestic miners and encourage domestic supply so that the nation may achieve 45% self sufficiency by 2015.