China Levies Xinjiang Tax

摘要

China’s finance ministry said Wednesday that it has imposed a 5% resources tax in Xinjiang province, in the west. The tax, which took effect Tuesday, will be levied on oil and gas output. It essentially marks a shift from a production-based tax to a duty based on the value of resources extracted. The old production tax was initially intro- duced at 12 yuan/ton ($1.76) before grad- ually rising to 24 yuan/ton for crude oil, but failed to keep up with rapidly rising in- ternational prices.