2008-02-21 19:30:55 Xinhua English
BEIJING, Feb. 22 (Xinhua) -- China is levying a full consumption tax on refined fuel oil and three other oil products retroactively from Jan. 1, Xinhua learnt from an official circular on Thursday.
The circular, jointly announced by Ministry of Finance and the State Administration of Taxation, said the tax for fuel oil will be raised to 0.1 yuan per liter after having collected only 30 percent of the tax since it was first introduced in April 2006.
According to the circular, Naptha, a feedstock for producing high octane gasoline and other petrochemical products, lubricants and solvent oil, would also be charged at a full rate of 0.2 yuan per liter.
Analysts said the new regulation will have little impact on the market.
Consumption tax is one type of tax category China started to levy in 1994. The tax was placed on four oil products in 2006 as part of efforts to encourage energy savings and to curb the development of highly polluting and resource intensive sectors.