China Hikes Fuel Tax
January 13, 2015 Taxation in China
BEIJING – China is responding to the global drop in oil prices by hiking the taxes on all oil products, including gasoline, diesel and jet fuel.
On January 12th the State Administration of Taxation of China issued a statement saying that on January 13th the consumption taxes levied on the sale of oil products will be raised.
Previously the consumption tax on gasoline, naphtha, solvent oil and lubricating oil was set at CNY 1.4 per litre, however, the rate will now be raised to CNY 1.52 per litre.
Also, the tax applied to the sale of diesel, jet fuel and fuel oil will now be set at CNY 1.2 per litre, a level which is RMB 0.1 higher than the previous rate of CNY 1.1 per litre.
The cuts to the rate of the consumption tax are part of the government’s reaction to the continual fall of the price of oil and oil products across the world, and the latest cuts are the third to be enacted in the country over the course of the last three months.
Photo By: Mr Thinktank