Finance ministry pushes for gas tax rise

摘要

China’s finance ministry could raise value-added tax (VAT) on natural gas in October to help top up the government’s depleted coffers. The ministry wants to raise VAT on gas to 17pc in the fourth quarter from 13pc, officials say (AGL, September 2011, p12). The plan is likely to face opposition from China’s main economic planning agency the NDRC, which is trying to boost gas demand by lowering prices for the fuel. Fiscal revenues grew by 9.3pc in the first quarter of this year to 3.5 trillion yuan ($546bn), the ministry says. But central government tax income growth slowed on the year, because of a deceleration in economic growth and an increase in export tax rebates. Government expenditure rose by 12.6pc over the period.