China to increase rare metals' export tax
Tuesday,May 29,2007 Posted: 21:50 BJT(50 GMT) chinadaily.com. cn
China will raise export taxes on a range of rare metal products, including tungsten, rare earth, and molybdenum, from June 1, in a bid to protect resources from running out, said Wu Rongqing, an official with the Customs Tariff Commission of the State Council.
The policy says the increased export tax on tungsten, rare-earth, and molybdenum is 15 percent, and tariffs on molybdenum oxide, ammonium molybdate, and natrium molybdate range from a five to 15 percent increase compared with the tax rebate policy on rare metals in the 1980s and 1990s.
The export tariff on tungsten increased to 15 percent from 10 percent, which is the fourth export tax increase since last year.
China supplies more than 70 percent of tungsten, but new figures show China only accounts for 35.5 percent of the world's basic reserves, dropping from 45 percent years ago. Meanwhile, domestic tungsten consumption has increased as well, with 23,500 tons in 2006, up 5.4 percent from that of 1997.
As for rare earth, China canceled the tax rebate in 2005, and collected a 10 percent export tariff on rare-earth oxide in November 2006. But export volumes still soared, a nine-fold increase from 1990.
Experts predict that Baotou Baiyunebo thulium reserves, the world's largest rare-earth reserve, will disappear in 30 years at current speed of consumption. And rare-earth resources in Ganzhou City, East China's Jiangxi Province, will be used up in 20 years.
The government will keep increasing rare metal's export rate according to market situations, said Wu, adding the extent will depend on the practical effects brought by current export taxes.
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