Significant tax challenges for miners

Significant tax challenges for miners
  • 2020-07-04
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The IRS should collect taxes from us when we have sales, not from taxing miners. Unfortunately, they say you have to prove that it is not for sale, while legally the principle is innocence. If something is going to be proven, the tax authorities have to prove it, not us miners, but unfortunately they don't go under.

According to the Iran International Stone Fair, the country should be taxed and away from oil revenues, but how taxes are levied to both collect taxes and boost production and turn mining is a matter that needs more attention. Did.

Mining activists believe that if we use tax instruments in an environment where the country has economic problems, there is no improvement for producers and tax exemptions do not last longer, in the near future the producer will not be able to survive and will face serious problems. Since the mining capital and its costs, including the supply of machinery and parts, the increase in VAT, and the collection and repayment to the government by cargo producers imposed on producers and miners, miners believe that the government should review its policies. Support more economic actors.

Problems with taxation

 "If the tax is not paid, the country will not be able to develop," said Qadir Qiyafeh, vice president of the Iranian Exporters' Confederation. An important issue is the method of exemption and discrimination that has been created in favor of industrial estates and to the detriment of mining.

Saying that no miner is opposed to taxation, but opposes the way taxes are levied and how exemptions are applied, Giafeh said: "Tax exemptions that have been granted to the mining sector in previous years have not been developed or, in other words, have been ineffective and deprived." Accordingly, mines located in certain areas are exempt from paying taxes for ten years.

"The first problem is that, unfortunately, these ten years have been accurately calculated since the issuance of the exploitation license, which is a short time," said the vice president of the Iranian Export Confederation. If we want to calculate correctly, it will take at least two years from the time a mine starts to produce to be equipped and commissioned. In the meantime, there may be a recession, and minerals may be so low that it is unprofitable for the miner to extract the mineral.

"It's finally five or six years when a miner can take advantage of a mining tax exemption," he said.

Ghifeh then referred to the concessions granted to industrial estates, saying that if any investor could invest in less affluent areas, he would be tax-exempt for thirteen years from the start and start-up of the industrial unit.

"This is a great discrimination against mining," he said. If the industrial unit in the industrial town built in the deprived areas is to be exempt from thirteen years, the mining unit must be exempt for fifteen years.

Saying that the legislature and those who wrote the executive regulations did not pay the necessary attention, Giafeh said: "Mines and the mining industry are responsible for building the infrastructure and supply electricity, water, gas and roads themselves, while in the industrial town, All water, electricity and street infrastructure are available. Also, the unit located in the industrial town has the advantage of increasing the land rate and the structure, but the mining unit, which is located in the most remote part of the country, cannot use this possibility and advantages.

Emphasizing that more support should be given to the mining units involved in production, he said: "The miners are facing a lot of problems and we have to give them the job of mining."

"Instead of focusing on energy production, exploration and development of the mine, we are unfortunately involved in conflicting, contradictory directives and the process of tax evasion and misconceptions created by the mining authorities," he said.

Requires lawful conduct

 Abolghasem Siddiq, a mining activist, said: "Our lowest expectation is that the tax will be legal." The Ministry of Finance says that in the value-added sector in a given year, your debt is a certain amount and you have to pay it, while I do. The manufacturer did not sell the mine that year.

Siddiqui continued: "Unfortunately, even though we declare assets, we do not have any sales to pay taxes on, they suggest that we inquire from the Ministry of Industry, Mines and Trade that you have this amount of production." Although this statistic is correct, the problem is that we do not have sales.

He emphasized: "Although the Industry, Mining and Trade Organization has entered from the moment of exploration to production and has our information, it no longer has statistics in the sales stage."

Criticizing that the IRS also collects taxes from the reserve burden, the miner said: "The IRS should collect taxes from us when we sell, not when it collects taxes from the miners' reserves." Unfortunately, they say you have to prove that it is not for sale, while legally the principle is innocence. If something is going to be proven, the tax authorities have to prove it, not us miners, but unfortunately they don't go under.

He continued by stating that there are documents and declarations, but the problem is that the law is not being implemented properly: I signed a contract in 2016 and announced that I had received this amount of money for the sale of chromite minerals. Later, this contract was terminated and transferred to another company, and in 1397, I stated the same amount of money again. Today, wealth wants to make money in both cases.

Pointing out that the High Judicial Council does not take much into account, Siddiqui emphasized: The arbitrator and the judge who decides in the property dispute resolution board are the litigants themselves. When the judge himself is a party to the dispute, he votes in his favor.

As a solution, he said: "Apart from the financial forces in the dispute resolution committees, people from mining organizations, the mining system, the mining house and even the ministry should be invited." People who are proficient in mining and are familiar with the rules should attend such meetings. Another way is for the jury to be held at the mine house and to represent the assets.