China to Extend Resources Tax to Cover Entire Nation

China plans to extend a tax on oil, gas and coal output to the entire nation, stepping up efforts to raise funds for development of poorer inland provinces in a move that will reduce earnings for resource producers.

The government will set a benchmark rate of 5 percent that will vary across commodities, Du Ying, vice chairman of the National Development and Reform Commission, said in Beijing today. It’s “unclear” when it will be applied nationwide, he said. The tax, introduced in Xinjiang province last month, will be extended through western areas, the government said on July 6.