China to Impose New Tax on Coal Sales in December
According to Premier Li Keqiang during that executive meeting of the State Council last week, that china is planning to impose taxes on coal starting December 1. The planned new tax will be levied as sales tax to coal and will replace the current tax being implemented based on output volume.
Based on China’s resource tax reform plan on the coal industry is considered one of the major step being dine to the reform of the fiscal and taxation services. As of the moment the resource tax on gas and oil is conducted thoroughly and with the new resource tax on coal a dual pricing system is being established. The head of the Research Institute for Fiscal Science of the Ministry of Finance stated that the reform on the coal tax might increase the prices of coal resulting to greater energy efficiency reduction in emissions and the balance of the energy mix in China.
The new coal tax will be 3 t o5 percent of the coal sales value and will increase the tax on each metric ton of coal up to 10 yuan per ton. The coal sector has been hit hard in the recent years by stagnant inventories and bad prices.
In January to August of this year China produced 2.52 billion tons of coal which is down by 1.4 percent compared to the same period in 2013.