China has formulated a draft law on resource tax ina bid to conservenatural resources and protect theenvironment. The draft law was released by theMinistry of Finance (MOF) and the StateAdministration of Taxation for public comment.
The draft law basically maintains the currentresource tax frameworkand rates formulated aftera reform to levy such tax on most resources basedon prices instead of quantities, said MOF in astatement.
Local governments will be authorized to set specifictax rates withincertain ranges, according to the statement.
It said conditions are not ripe for legislation on a water resource tax, noting that further pilotreform is needed to improve the tax system.
Under the draft law, Chinese and foreign companies jointly exploring crude oil and natural gaswill pay resource tax instead of royalties.
Nearly 800 billion yuan of resource tax was collected from 1994 to 2016, an annual averagegrowth of 14.8%, with 95.1 billion yuan collected last year, according to MOF data.
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Resource tax