China is looking to expand its resources tax reform from Xinjiang to all 12 western provinces, the South China Morning Post reported. Premier Wen Jiabao said the resource tax on coal, crude oil and natural gas will be changed from volume to price-based in western regions. He also said Beijing would continue a 15% corporate income tax on companies based in western regions compared to the standard 25% rate. The government last month said Xinjiang would launch a 2% to 5% tax on coal revenue compared to a previous tax system that put a levy on output. The reforms are part of a wider move to better the economic health of western regions that continue to underperform their eastern peers.
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