VietNamNet Bridge - The Vietnam Coal and Mineral Industries Group (Vinacomin) has asked for a 90 percent reduction in the environment tax for bauxite projects in the Central Highlands.

Thoi Bao Kinh Te Sai Gon has quoted a source from the Ministry of Finance (MOF) as saying that Vinacomin made the proposal at a workshop discussing the amendment of environmental protection policies.

The current environment tax applied to bauxite projects is VND30,000-50,000 per ton. Vinacomin has proposed to lower the tax to VND4,000 per ton.

“The wanted a tax rate of VND4,000 which was applied to soil and sand exploitation for building materials,” the source from MOF said.

Vinacomin argues that the bauxite exploitation is simple work: it is just necessary to shovel the thin layer of soil, get ore and then put soil in again.

Bauxite ore and the soil covering it are soft, therefore, there is no need to use mines during the exploitation. 

Vinacomin believes that the pollution level caused by the bauxite ore exploitation is low, and the company deserves a lower environment tax rate.

Vinacomin successfully asked for investment incentives for the two bauxite projects in the Central Highlands. The investor asked for lower investment in the reservoir with red mud because it was considered safe.

Vinacomin now can enjoy preferences in five kinds of tax, including a land rent reduction, equipment and fixed asset import tax exemption, component and material imports for Tan Rai alumina project in Lam Dong province, and an alumina export tariff reduction to zero percent.

Despite the huge tax incentives, the two projects will only see losses from 2016 to 2020 as reported by the Ministry of Industry and Trade to the National Assembly’s Steering Committee in March.

Dr. Ho Uy Liem, a renowned scientist, noted that the two projects in the Central Highlands aim to stimulate the local economy, and in order to reach that goal, the projects need to be profitable. 

If the projects can make a profit, the investor would be able to pay higher taxes to the state and the local authorities, which could use the money to build houses, schools, hospitals and roads in the region.

Meanwhile, Dr Dang Trung Thuan, chair of the Vietnam Geochemistry Association, said that soil rehabilitation after the bauxite ore exploitation is not as simple as Vinacomin says.

The expert also warned about water pollution in the rainy season and red mud dust in the dry season caused by mining projects. 

In the rainy season, the heavy rain the Central Highlands would sweep away soil, thus badly affecting the quality of the water running into the lower course.

TBKTSG