China to expand footprint of resource tax based on price

China will levy its resource tax on most minerals based on price from July 1, the state-owned Xinhua news agency quoted a government statement as saying.

The tax will be levied based on the price of minerals than quantity, said the statement jointly issued by the Ministry of Finance and the State Administration of Taxation.

Since 2010, China has experimented with taxes based on price instead of quantity in six mineral products: coal, gas, molybdenum, oil, rare earth and tungsten, Xinhua said.

A pilot on water resource taxation in north China’s Hebei Province is expected to expand to wood, pasture and tidal flat in the future.

Authorities will cut certain fees on minerals to reduce tax burdens.

China introduced resource taxes in 1984, mainly targeting businesses in oil, natural gas and coal.

 

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