China Plans To Launch Fuel Tax
Posted on: Wednesday, 19 November 2008, 13:24 CST
China’s head of National Development and Reform Commission's (NDRC) Energy Research Institute told the China Daily newspaper that the nation would be soon initiating its aforementioned fuel tax "very soon."
Officials close to the leadership spoke anonymously saying that nationwide oil pricing was soon to be revamped in 20 days, China Daily reported on Wednesday.
"The announcement will come very soon, and actually specific plans have already been suggested to the government long ago," Han Wenke, director general of the research body, was quoted as saying.
Once the program is implemented, existing toll-road and other transport charges will be rolled back.
"The reforms should be good for corporate earnings," Mak said. "The fuel tax is a tax on consumers and will make tax payable by corporations less complicated."
China's state-regulated fuel prices were below international pump prices for years, but the slump in crude oil prices in the last few months has made China's retail prices comparatively high, giving the government a window of opportunity to cut prices and introduce a fuel tax without upsetting motorists.
"The government has repeatedly said that it is looking for an appropriate time to start levying (the) fuel tax, and now, with the global oil prices going down so much over the past few months, I think this is a great time to impose the tax," Han said.
The tax would be slightly above 1 yuan ($0.147) a liter and January, or earlier, would be a good time to roll out the change, Jiang Kejun, a NDRC Energy Research Institute member involved in formulating the fuel tax scheme, told the newspaper.
Amid growing expectation of an imminent official announcement, the China Securities News cited a China International Capital Corp analyst as saying late on Tuesday that fuel prices would be cut "around" this Thursday.
Source: redOrbit Staff & Wire Reports
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