China to Levy 5% Resource Tax on Crude, Gas

BEIJING, May 27 -- China will levy a 5 percent resource tax on crude oil and natural gas sales in the northwestern Xinjiang region from June 1, Caijing magazine reported on its website, citing sources with the Ministry of Finance and State Taxation Administration.

Resource taxes on coal will range from 2-5 percent, the report said.

The measures will boost Xinjiang's fiscal revenue by over 2 billion yuan ($292.93 million) before the end of this year, it said.

China has said it would start the resource tax reform in Xinjiang, which will levy the tax based on prices instead of volume.