Top Oil Buyer's Imports Seen Constrained by Tax Revamp Fear
- China’s private refiners holding back on purchases in 1Q: ICIS
- New tax rule is seen spurring concern that it’ll erode margins
Photographer: Dimas Ardian/Bloomberg
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Oil purchases by some refiners in the world’s biggest crude importer are being constrained as the firms assess the potential impact of a new tax system in China.
A revamped tax rule that’ll be implemented in March is spurring concern among the nation’s independent processors, known as teapots, that it would erode margins, according to Shanghai-based commodities researcher ICIS-China. The new regulation is seen as a government effort to close a loophole that allowed oil traders to profit from beefing up more expensive fuels by blending it with cheaper chemicals.