China Plans To Raise Fuel Taxes In January, But Promises No Rise In Price For Consumers

摘要

China plans to undertake fuel-tax reform Jan. 1, 2009, increasing gasoline and diesel taxes in a bid to encourage energy efficiency and cut back on polluting emissions, the central economic planning body announced Dec. 5. Under a draft proposal, the National Development and Reform Commission said consumption taxes on gasoline would increase from 0.2 yuan (3 cents) to 1 yuan per liter (15 cents per liter or about 57 cents per gallon), while taxes on diesel fuel would rise from 0.1 yuan to 0.8 yuan per liter. The central government first announced in January that it would undertake fuel-tax reforms in 2008, but changes have been slow in coming amid economic uncertainty and record consumer inflation, which has slowed in recent months. There was speculation that the package would include new taxes, but none were unveiled.