Analysis On The Impact Of Resource Tax Reform On Financial Performance Of Luoyang Luanchuan Molybdenum Group Co.LTD

Tungsten ore and molybdenum are both China's advantageous minerals.China's tungsten and molybdenum resources are rich in reserves,and its development and utilization have made important contributions to the world's mineral market supply.China's tungsten resources are known as the “three firsts” because their reserves,production,and export volume rank first in the world.China's molybdenum resources are equally rich with a total reserve of 8.4 million tons,ranking the second in the world.However,years of unrestrained and extensive exploitation have caused China to face serious tungsten and molybdenum resource crises.As the economy continues to grow,the use of resources and the amount of exploitation are also increasing.The resource tax system used in the past is no longer applicable to the current environment.It cannot lead the allocation of resources and energy,and it cannot effectively protect the environment.Moreover,due to China's compliance with WTO regulations,the elimination of export tariffs for rare earth,tungsten,and molybdenum has caused resource taxes to be placed on high expectations to promote the rational development of China's resources.To this end,on May 1st,2015,China launched a unified taxation reform on rare earth,tungsten,and molybdenum resources.The tax rate was determined as a tungsten ore tax rate of 6.5%,and the molybdenum ore tax rate was 11%.Mineral Resources Charge Fund.This reform involves ad valorem pricing,clearing fees and taxes,reducing the burden of taxes on tungsten and molybdenum companies,and removing taxes and funds that are not in compliance with the law.This has a great impact on tungsten and molybdenum companies,but it has an impact on the tax burden of enterprises.how is it? In particular,how is the impact on corporate financial performance? This is a problem worthy of attention and research in the academic community and the industry.Based on the study on resource tax reform on the literature,based on existing resource tax theory,the analysis of the current resource tax collection problems,noted the existing resource tax can not reflect the impact of price changes.In this paper,we study the effect on financial performance of Luoyang Luanchuan Molybdenum Group Limited Co.,Ltd.,for example,after the reform of resource tax levied ad valorem.And then make recommendations to the resource tax reform in China,and puts forward some suggestions on the development of mining enterprises.