Prevent businesses from selling raw minerals

Penalties but no regulations on tax collection

Implementing the direction of the People’s Committee of Lam Dong province, the Department of Natural Resources and Environment (NON-MT) has just requested the Provincial Tax Department to comment on the draft document to be sent to the General Department of Taxation, recommending guidance on tax handling for the following: In case of failure to process and declare mineral products in the correct proportion according to the mining and processing plan approved by competent authorities.

In particular, comments are requested on supplementing the provisions of the Law on Tax Administration on handling mineral exploitation not associated with processing.

According to the Department of Natural Resources and Environment, recently, the tax handling of cases of not processing and declaring mineral products in the correct ratio according to the mining and processing plan approved by competent authorities has been difficult. some difficulties and problems.

With some licenses in the province, after blasting, the enterprise does not continue to process finished products according to the investment project and the mine design documents are appraised. This amount of blasted rock (raw rock) is sold to other units for use or further processing.

With this form of exploitation, the declaration of natural resources tax can only be made once on the product sold for the first time from blasted rock, the price is much lower than the finished product, so businesses will reduce the natural resources tax paid to the state budget. . This will cause loss of budget revenue and unfair competition in mineral exploitation activities.

In addition, acts of mineral exploitation not associated with processing under the above investment project will be handled according to Decree 04/2020/ND-CP. However, the relevant provisions on penalties do not provide for tax collection or handling.

Many mineral enterprises violate

According to the conclusion of the Lam Dong Provincial Inspectorate regarding mineral exploitation and processing activities, Tan Tu Anh Joint Stock Company does not process all the raw stone but mainly sells it to Nguyen Phat Production-Trading-Service Company Limited. ; Lam Phan Company Limited sells raw stone to Lam Dong Industrial Construction Company Limited; Ngoc Lam Joint Stock Company sells raw stone to Ngoc Bac Binh Company Limited.

Regarding the issue of financial obligations related to minerals in general, according to data from the Tax Department of Lam Dong province, in the period 2020-2022, there are 21 businesses that still owe financial obligations of nearly 19.7 billion VND. Of which, natural resources tax is more than 10.4 billion VND, other declaration rights fees are nearly 7.8 billion VND, and environmental protection fees are nearly 1.3 billion VND.

Regarding inspection and handling of violations, Lam Dong Provincial Inspectorate assessed that the inspection work of the People’s Committees of districts, Da Lat City, and Bao Loc for licensed enterprises is rarely carried out. Unless there is direction from the Provincial People’s Committee, information from the press or feedback from the people, localities will only implement it. Localities also mainly check and handle cases of fragmented and small illegal sand mining.

Although there are coordination regulations between the tax industry and the natural resources and environment industry, the regulations do not clearly define joint inspection coordination. Therefore, the detection and handling of problems arising at the mining site are not consistent with the documents kept by the enterprise at the time of inspection.