China raises consumption tax on oil products
Source: www.chinamining.org Citation: Xinhua Date: January 13, 2015
 |
| Drivers fuel their vehicles at a gas station in Changchun, capital of northeast China`s Jilin Province, Jan. 12, 2015. (Xinhua/Xu Chang) |
China`s finance and taxation authorities on Monday announced that consumption tax on oil products would be raised from Tuesday.
The tax on gasoline, naphtha, solvent oil and lubricating oil will be increased to 1.52 Yuan (about 25 U.S. cents) per liter from 1.4 Yuan. The levy on diesel, jet fuel and fuel oil will be increased from 1.1 Yuan per liter to 1.2 Yuan, according to the Ministry of Finance (MOF) and the State Administration of Taxation (SAT).
This will be the third increase in as many months, following one on Nov. 29 and another on Dec. 13.
The retail prices of gasoline and diesel will be cut by 180 Yuan and 230 Yuan per tonne after taking the higher tax into consideration, the National Development and Reform Commission announced in a separate statement.
This the 12th retail fuel prices cut since July 2014, as the government reacts to lower global crude oil prices.
Proceeds from the higher taxes will mainly be allocated to counter-pollution initiatives and the new energy sector, according to the MOF and the SAT.
However, experts warn that the drop in oil prices is bad news for the new energy sector. For example, new-energy cars will see reduced sales, said Liu Shangxi, director of the research institute for fiscal science at the MOF.
China`s energy consumption accounted for about 22.4 percent of the world`s total in 2013, but its energy consumption per gross domestic product (GDP) was 3.5 times of that of the United States and seven times of that of Japan, according to Liu.
Fuel tax and pricing reform measures began five years ago, and have featured consumption tax hikes and the introduction of a pricing system more closely linked to the international market.
Consumption tax was first imposed in 1994 on consumer goods with a high energy cost and high pollution to make production and consumption more environmentally-friendly and promote sustainable growth.
Over ten countries including Russia, Australia, New Zealand and France have raised their oil product consumption tax since 2012 to ensure green development.
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: www.chinaminingtj.org.
