Resource Tax To Cover 12 Provinces In Western China

The resource tax reform implemented last month in Xinjiang province will be extended to 12 provinces in western China, reports Shanghai Securities News, citing a conference held by the central government from July 5-6.

Under the resource tax reform, local governments will levy taxes on coal, crude oil, natural gas and other resources. The tax will be levied based on the selling prices of the natural resources instead of sales volume.

The Ministry of Finance had previously directed that the resource tax will be imposed in Xinjiang province from early June at a rate of five percent.

According to analysts from C1 Energy, a resource tax based on the selling prices of natural resources would increase the amount of taxes paid by producers of crude oil in Xinjiang province by 16-17 times as compared to a volume-based resource tax.

This would thus prompt a switch to the development of new energy while enhancing the fiscal revenues of local governments in western China.

According to the report, Gansu province will be developed into a key wind power generation base in China.

Officials at the conference decided that the western part of China will be developed into an important base for the power generation and equipment manufacturing industries.

Source:  CapitalVue                                       Published on: 2010-07-07 

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