China Proposes A 10% Tax On Crude Oil Output
A 10% resource tax has been proposed for crude oil output by China's Finance
Ministry this week, according to reports. The tax is likely to be phased in, with a 5% rate to be imposed initially,
but no start date for the policy has yet been confirmed. The proposed move has reportedly received criticism from some quarters, with
observers suggesting that it could result in increased domestic oil prices and
a resultant drop in investment in the sector. Speaking to XFN News, Gordon Kwan, oil and gas analyst with CLSA, a provider
of equity brokerage, investment banking and asset management services in the
region announced that despite the positive environmental motivation behind the
planned tax: "I don't think it is a good solution." He went on to observe that: "The US had a similar tax system but it scared away investment and output
declined. They have become more dependent on imports." .
|
|
IMPORTANT NOTICE: TAX-NEWS.COM has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright TAX-NEWS.COM 1999 to 2007. Contact us for further information.