UPDATE 1-China May Extend Resources Tax from Sept -Media-Shanghai Metals Market

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UPDATE 1-China May Extend Resources Tax from Sept -Media

Data Analysis 05:34:32PM Jul 09, 2010 Source:SMM

BEIJING, July 9 -- China may extend a resources tax reform nationwide from Sept. 1 after launching it in Xinjiang, financial website www.caijing.com.cn reported on Friday, citing unnamed officials with the Ministry of Finance and State Administration of Taxation.

From June 1, the central government began levying a 5 percent resources tax on crude and natural gas output based on selling prices in northwestern Xinjiang region, replacing earlier levies based on output, aiming to boost fiscal revenue at local governments.

Premier Wen Jiabao said earlier this week that the government was on the verge of expanding the resources tax trial throughout western China and that it would also cover coal production.

China is likely to impose a 5 percent resource tax on coal based on selling prices, which would however be postponed to the fourth quarter as the government was concerned about affordability for independent power plants that have seen feedstock prices rise 10 to 20 percent year on year in the first half, according to a Citi research note.

The Caijing report said the resource tax on coal in Xinjiang was 2-5 percent, but this has not been confirmed by the government.


 

Key Words:  resource tax 

UPDATE 1-China May Extend Resources Tax from Sept -Media

Data Analysis 05:34:32PM Jul 09, 2010 Source:SMM

BEIJING, July 9 -- China may extend a resources tax reform nationwide from Sept. 1 after launching it in Xinjiang, financial website www.caijing.com.cn reported on Friday, citing unnamed officials with the Ministry of Finance and State Administration of Taxation.

From June 1, the central government began levying a 5 percent resources tax on crude and natural gas output based on selling prices in northwestern Xinjiang region, replacing earlier levies based on output, aiming to boost fiscal revenue at local governments.

Premier Wen Jiabao said earlier this week that the government was on the verge of expanding the resources tax trial throughout western China and that it would also cover coal production.

China is likely to impose a 5 percent resource tax on coal based on selling prices, which would however be postponed to the fourth quarter as the government was concerned about affordability for independent power plants that have seen feedstock prices rise 10 to 20 percent year on year in the first half, according to a Citi research note.

The Caijing report said the resource tax on coal in Xinjiang was 2-5 percent, but this has not been confirmed by the government.


 

Key Words:  resource tax