China slashes VAT on DME to promote it as fuel

25 June 2008 09:34  [Source: ICIS news]

SHANGHAI (ICIS News)--China is to cut value added tax (VAT) on dimethyl ether (DME) from 17% to 13%, effective 1 July, an official from the Finance Ministry said.

 

The tax cut was part of a government drive to promote DME, which was a low cost fuel with low carbon emissions, as the “next generation” fuel for China, the official added.

 

About 90% of the DME produced and blended with liquefied petroleum gas (LPG) is consumed as household fuel.

 

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By: Rainy Ma
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