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Tax changes 'will drive up rare earth prices'

By Wang Zhuoqiong | China Daily | Updated: 2014-05-21 06:44

Changes may be in store for taxes on rare earths, a move that could push up the prices of these scarce minerals, an industry source said.

The anonymous source said that several ministries are discussing heavier taxes on rare earth producers, and an announcement on the changes will probably be made during the second half.

Taxes would be imposed based on the value of the minerals, rather than on volume as is the case at present. That shift will mean higher prices at the producer level, which the government hopes will reflect the scarcity of these resources and the environmental costs of their extraction.

Tax changes 'will drive up rare earth prices'

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