The Financial Impact Of Resource Tax Reform On Chinese Coal Enterprises

Coal is the dominant fuel of Chinese energy consumption.The coal industry is an important pillar of the national economy.However,with Chinese economic slowdown,coal industry overcapacity,and energy structure adjustment,the coal market increasingly sluggish,most of companies are experiencing difficulties in business operation.Coal resource tax reform began to implement on December 1,2014.At the same time,the government thoroughly screened relevant fees and funds to ensure that reform does not increase the burden of coal enterprises.Based on the reform of coal resource tax,this paper puts forward the theoretical basis of this study,including the theory of resource tax and the theory of tax burden.Then,this article combs the change process of the resource tax system,which is divided into three stages: the excess rate progressive price,the amount of the levy and the ad valorem,and analyzes the shortcomings of the original resource tax design and introduce the contents of this reform.Then,this paper takes one of the five largest coal enterprises in Shanxi Province--Yang Quan Coal Industry(Group)Co.,Ltd.as an example to study the impact on tax structure,tax burden,profits and other aspects.The reform has had a good impact,including the tax structure is more reasonable,the tax burden decreased,the increase in profits.Finally,the paper makes some suggestions for the coal enterprises,including taking advantage of tax incentives,selling separation coal,merging downstream firms and improving the mode of operation.