EMH 7.84% 27.5¢ european metals holdings limited

Czech Republic elections, page-39

  1. 208 Posts.
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    I didn't read it, possibly yes. But that's what suits EMH not the Czech government and it is CZ side who imposes taxes. Carbon tax wasn't included in coal miners' PFSs ten or what not years ago either.
    Also, a tax on mined commodity isn't a tax on profits. Many different taxes could be applied - corporate taxes (that's what could be voided for ten years), mining taxes (that's what I meant), environmental impact taxes (to the regional government for bearing with local environmental issues), property taxes (on land they occupy), social and health (employees) expenses and superannuation,..

    Also, tax free holidays used to be applied to attract FDIs (Foreign Direct Investments) to boost economy, employment rate in critical regions and promote businesses bringing added value to the Czech market such as domestic R&D. This policy has been pretty much dismissed in a second half of 00's since it's not popular among public neither among politicians across all parties and levels as there is no stream of income to the country's/region's budget for many years and no guarantee that the business won't close when the holidays are over. Also, Czech republic currently doesn't need to motivate businesses to allocate their production there as there's a historically lowest unemployment rate. Even in the Teplice region, where it used to be above 15%, it is now perhaps only 6%. Secondly, mining itself isn't a kind of business that could claim such support. It's rather for consequent battery producers who also allocate their R&D there. That will bring more added value, means an investment in educating their staff, bringing people with a tertiary education in, etc. Sustainable businesses that, if they closed, wouldn't leave only a hole after themselves but well educated and capable labour power that's easily transferrable to other industries. Hence, why the region suffered from high unemployment in the past - local coal mines (and other incl. Cinovec) closures/personal cuts in 90's.

    Other issues are caused by EU legislation restricting governments from giving local businesses an advantage over their competitors in abroad (not really a case of a lithium mine as that's not "everywhere" like coal with its developed global market, but still something to take into account. CZ government has to ask for EU approval in such cases).
    There are other instruments that support FDIs such as "soft" interest rates, government pays for needed infrastructure, the land (in case if factories for instance) is given for a symbolic price or leased for like 1€ a year for twenty years, employees training will be co-funded by government, etc.

    I think I exhausted myself for now, but happy to discuss further later. It would be worth checking current policies of Czechinvest organisation that looks after big FDIs. I don't think there would be any mine, def not a large one (there were talks once about restart of uranium mining also by an Oz coy). Mainly it's IT, R&D, automotive, machinery, whatever big...

    MB
 
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