China to raise resource tax on rare earths from April: report

Thu Mar 24, 2011 5:15am EDT
 
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HONG KONG (Reuters) - China will increase a tax on rare earths from April 1, according to a local media report on Thursday.

The report, carried on the website of State Administration of Taxation, said the resource tax would be raised to 30-60 yuan per tonne, depending on type, a substantial increase from the current level of 0.5-3 yuan per tonne.

China, the world's dominant producer of rare earths, used in a wide range of products from precision-guided weapons to hybrid car batteries and tablet computers, has restricted exports, forcing international prices up dramatically since July last year.

(Reporting by Polly Yam; Editing by Chris Lewis)

 
<p>Workers wearing face masks load discarded piles of sacks onto a truck at a rare earth smelting plant located on the outskirts of the city of Baotou in China's Inner Mongolia Autonomous Region October 31, 2010. REUTERS/David Gray</p>