MPP wants copper royalty at 15%

 

The MPP group in Parliament favors a 15% royalty on copper, both ore and enriched, to make up for the revenue loss following repeal of the windfall profit tax on January 1, 2011. It expects the measure to yield MNT207 billion to the budget. The group yesterday discussed amendments to the law on mineral resources and hoped the Government would accept its suggestions and submit to Parliament for discussion a revised policy on mineral resources within two weeks, the head of the group, D.Lundeejantsan, told media after the meeting. The Government has proposed to introduce sliding royalty rates on gold, copper and coal.

Lundeejantsan answered nedia questions.

Will there be time to discuss the mineral resources policy before passing the budget?

There has to be, as the mineral resources policy will determine the tax structure.

Would a 15% royalty yield the same as the windfall profit tax?

No. It would be much less.

Will Oyutolgoi LLC pay royalty on the copper?

This will be discussed only mining proper begins there.

Have you talked to the DP group about the proposals to raise excise tax on motor vehicles?

We do not know if the DP group has changed its mind about not supporting the increase. We favor more tax on trucks with more than 20 tons capacity.

Will the combined budget be passed before the deadline?

If all goes according to schedule, the budget will be passed on Wednesday or Thursday.