16 November 2012 17:25 [Source: ICIS news]
SINGAPORE (ICIS)--China will levy consumption taxes on products produced from crude oil or other feedstocks that exist as liquid under normal temperature and atmospheric pressure, except for those that meet certain national standards, effective from 1 January 2013, the State Administration of Taxation (SAT) said on Friday.
For all other liquids, consumption tax will also be levied unless the products meet the national standards or petrochemical industrial standards, with quality certificates issued by provincial or above level inspection departments, the SAT said.
Bitumen will be treated as fuel oil and the others as naphtha in levying the taxes if they fail to meet the above mentioned requirements.
At present, the consumption tax for fuel oil and naphtha is yuan (CNY) 0.8/litre and CNY1.0/litre ($0.16/litre), respectively.
According to the SAT, the move is to close loopholes on the existing system that make it possible for producers and traders to pay less taxes through changing the product name in operations.
($1 = CNY6.24)
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