China to Implement Resource Tax in Western Regions

BEIJING, July 7 -- China will implement a resource tax in the western regions of the nation on coal, oil and natural gas, the China News Service reported late yesterday, citing Premier Wen Jiabao.

The tax will be levied based on the sales price of the resources, according to the report, which didn't give a date for when the tax would be levied from or what percentage the tax would be levied at. The China News Service cited comments made by Wen during meetings held on July 5 and July 6.

China will also tax companies in some industries in the nation's western regions at a lower rate of 15 percent, the China News Service reported, citing Wen. It didn't say what rate taxes on companies were being cut from.