October 07, 2008

China to increase resource tax on coal rate to 3%

It is reported that the total reform plans on resource tax rate have been reported to State Council and advice and opinions from related departments still need to be solicited, however it is very clear that coal resource tax rate will be improved from 1% to 3%.

As per report the coal resource accounts for a very important position in China’s energy structure, the increase of coal tax rate will transmit to downstream products leading to CPI further rising again.