Study on the reform of resource tax and sustainable development of the underdeveloped resource-rich regions in China

The underdeveloped resource-rich region in China refers to the underdeveloped region with abundantnatural resources. The problem for these regions sustainable development cannot be negligible for its particularity innatural resources and environment. This paper mainly examines the issue about resource tax reform and the sustainabledevelopment of underdeveloped resource-rich regions. It first expatiates on regional characteristics of underdevelopedresource-rich regions, then analyzes the effect that resource tax has on the sustainable development of this type of regions,takes Yulin City as example to illuminate the negative influence on the sustainable development of those regions due to thedesign limitation of the existing resource tax, and put forward some suggestions, including to delegate tax legislativepower to lower levels, to increase resource tax rate, to expand its levied scope to give play to the potential main tax to localrevenue, to improve the design of resource tax, to enhance the its function of resource saving and environmentalprotection, to attach importance to regional interest of underdeveloped resource-rich regions and to improve of theinterest distribution system concerning the tax system and resource exploitation.

Choice and Simulation of Tax Rates in Resource Tax Reform

Resource tax reform will be done during China＇s 12m Five-Year Plan, but related research is still lacking. Here, we build a computable general equilibrium model （CGE） comprising the functional equations of production, consumption, income/expenditure and resources to analyze the resource tax rate. The model uses the valorem tax levy to simulate the impact of economic and resource systems with different resource tax rates, by referencing the expected rate ranges of China and developed countries. The results show that the impact is different for social, economic and resources of varying degrees. In the relatively stable period of economic development, we can select a tax rate of 5% to 7%; during higher economic development we can select an optional high level of resource tax; and in a fluctuating economy we can choose a lower tax level.

Resource Tax Reform:A Case Study of Coal from the Perspective of Resource Economics

Using the adjusted E1 Serafy user cost approach to estimate the depletion cost of coal resources, this paper demonstrates that user cost exists in the exploitation of China＇s coal resources and has increased rapidly with the substantial growth of coal output. It is necessary to levy a resource tax that reflects the real cost of coal resources. The results of our calculations show that from 1992 to 2009, the theoretical ad valorem coal tax rate determined in accordance with the user cost fluctuated between 2 and 14 percent. A further analysis of the impact of an ad valorem coal tax on the Chinese macroeconomy with a dynamic computable general equilibrium （CGE） model shows that a tax rate of 5-12 percent for coal resources would better reflect the cost of depletion of coal as a scarce resource, with the macroeconomic impact falling within the acceptable range. Therefore, resource tax reform is significant for China＇s sustainable development.

Several Ministries Released Mineral Resource Plan, Tax Reform for Mineral Resource will Make Progress

In order to adapt to market changes,speed up adjustment and transition&upgrading of mining industry structure,on November 29,the Ministry of Land and Resources joined the National Development and Reform Commission,the Ministry of Industry and Information Technology,the Ministry of Finance,the Ministry of Environmental Protection,and the Ministry of Commerce。