INTERNATIONAL COAL NEWS

China imposes coal tax

CHINA has given its resource tax system an overhaul by extending its taxable resources to include...

Lauren Barrett

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The new tax regulations were approved by China’s cabinet on Monday and will be introduced on November 1.

The new regulations will impose a sales tax ranging from eight yuan ($A1.25) to 20 yuan ($3.15) per tonne of coking coal.

The Chinese government said other types of coal would remain unchanged at 0.30/t to five yuan/t.

Crude oil and natural gas will now be taxed at a rate between five and 10 per cent of their sales value.

A resource tax on oil and natural gas was introduced in China’s Xinjiang Uygur autonomous region on June 1, 2010 but was extended to 11 other provinces six months later.

The tax is assessed on value rather than volume to prevent the government from benefiting from increased energy prices.

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