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China May Levy Resource Tax of 10% on Oil, Gas, Securities Says

May 5 (Bloomberg) -- China’s planned resource tax on the sale of oil and gas may be as high as 10 percent, Shanghai Securities News reported, citing a government document it obtained.

The government may levy a tax of 5 percent to 10 percent of sales value, according to an amendment to temporary regulations on the matter, the newspaper reported, without giving details on a timeframe or geographical regions for implementation.

China has proposed a nationwide resource tax to raise funds to develop the poorer western regions, which are rich in oil, gas and coal reserves. The government first introduced a trial tax of 5 percent in Xinjiang province in June, which it widened to other western provinces a month later. It hasn’t announced final plans for the entire country.

Coal will still be taxed by volume rather than price levels, according to Shanghai Securities, which is owned by the official Xinhua News Agency. The tax may be raised to between 0.3 yuan and 8 yuan a metric ton from 0.3 yuan to 5 yuan, the newspaper said, citing the amended rules.

Nationwide introduction of the taxes may be delayed because of inflation concerns, the Shanghai-based newspaper reported, citing unidentified people.

Hu Jinglin, a spokesman for the finance ministry, and Li Pumin, a spokesman at the National Development and Reform Commission, didn’t answer three calls made to their offices.

To contact the reporter on this story: Baizhen Chua in Beijing at bchua14@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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