Many businesses 'fought hard' to win the sand mine auction and now ask to return the mine due to resource tax

Despite auctioning off dozens of sand mines, Quang Ngai currently has few mines in operation, most of them are slow to exploit - Photo: TRAN MAI

After the "fever" of raising bidding prices to win the 2023 sand mine auction in Quang Ngai, in 2024 many businesses asked to return the mines, citing high resource taxes. The government said the fault lies with the businesses.

Enterprises ask to return sand mines, the reason is resource tax

According to statistics from the Department of Natural Resources and Environment of Quang Ngai, in 2023, two enterprises ceased operations despite winning the auction of sand mines: Phu Cuong Construction and Trading Company Limited requested to cancel the auction of Xuan Dinh sand mine (Hanh Thinh commune, Nghia Hanh district); THC Quang Ngai Investment and Development Joint Stock Company won the auction of Ngan Giang village sand mine (Tinh Ha commune, Son Tinh district) but unilaterally terminated and did not exploit it due to financial problems.

In addition, Hop Nhat Investment Development Joint Stock Company also requested to cancel the auction results of the sand mine in Dong My village (Nghia Hiep commune, Tu Nghia district); Sao Viet Investment and Construction Joint Stock Company requested to cancel the auction results of two sand mines in Nghia My and Nghia Hiep communes (Tu Nghia district).

Dong Khanh Construction Company also requested to return the Truong Xuan - Tho Loc sand mine (Tinh Ha commune, Son Tinh district).

The main reason these units pay the mine is that the resource tax according to the 2024 price list is higher than in 2023.

In 2023, the price for calculating resource tax issued by the People's Committee of Quang Ngai province is 150,000 VND/ ^m3 , and in 2024 it is 230,000 VND/ ^m3 .

A business said: "I bid and completed the procedures in 2023, but have not paid the mining right tax, so why is the resource tax applied in 2024?

The price frame changed, increased by tens of billions of dong, exceeding the company's financial plan, so we asked to return the mine.

Dong Khanh Construction Company requests to return Truong Xuan - Tho Loc sand mine - Photo: TRAN MAI

The government is doing everything right, but businesses are making things difficult for themselves?

There are enterprises currently exploiting and requesting not to apply tax payment according to the 2024 price list but to continue paying resource tax as in 2023.

For example, Quang Ngai Mineral Development Investment Joint Stock Company won the auction and exploited at Tinh An - Nghia Dung sand mine (Quang Ngai City) from 2023. The total tax payment according to the unit price in 2023 is 113.9 billion VND. The company paid the first tax in 2023, which is 50 billion VND. The remaining tax amount is divided into 4 times, paid in the next 4 years, each year is nearly 16 billion VND.

However, last March, based on the 2024 price list, the Quang Ngai Tax Department announced that the owner of Tinh An - Nghia Dung sand mine had to pay 24.5 billion VND in tax to continue mining rights, instead of 16 billion VND.

Mr. Nguyen Duc Trung, Director of the Department of Natural Resources and Environment of Quang Ngai, affirmed that the application of the 2024 resource tax collection price list to collect tax from the above enterprises is completely in accordance with regulations. The Tax Department's announcement that the tax amount to be paid to enterprises has increased is correct.

"These enterprises, after winning the sand mine auction, fell into the following cases: winning the auction in 2023 but still not completing the exploitation procedures, not paying resource tax to be granted the exploitation right; enterprises completed the procedures in 2023 but after receiving the tax payment notice, did not come to pay within 90 days.

After this period, it is mandatory to calculate taxes according to the 2024 price list," said Mr. Trung.

Mr. Trung affirmed that the application of resource tax in 2024 is completely correct - Photo: TRAN MAI

The businesses asked to cancel the auction results and return the mine, citing the high tax rate as an unjustified reason. Because the government had notified and urged the businesses to complete the procedures to put the mine into operation, but the mine owner was still dragging his feet, and now they are blaming.

"Winners of the 2023 auction must complete procedures and fulfill financial obligations within the year. Obligations go hand in hand with rights. Businesses that do not complete them will have to apply the 2024 tax rate in 2024. Businesses are making things difficult for themselves.

"Forcing us to 'turn back' now is no different than forcing us to violate the law," said Mr. Trung.

Meanwhile, Mr. Tran Hoang Tuan, Vice Chairman of Quang Ngai Provincial People's Committee, also concluded on the issue of the winning enterprise requesting to cancel the bidding results, or requesting to pay resource tax as in 2023.

The Provincial People's Committee did not accept the enterprise's proposal, requesting the fulfillment of financial obligations as announced by the Provincial Tax Department.

At the same time, relevant units are required to take strict corrective measures to avoid businesses "raising sky-high prices, winning the bid and then running away" causing market disruption.

Source: https://tuoitre.vn/nhieu-doanh-nghiep-quyet-chien-de-trung-dau-gia-mo-cat-gio-xin-tra-mo-vi-thue-tai-nguyen-20240731192153147.htm