China may levy oil and gas tax of 5-10%

China may levy a nationwide tax of 5-10% on sales of oil and gas, using the proceeds to develop its poorer western regions, Bloomberg reported, citing the Shanghai Securities News. China introduced a trial tax of 5% in Xinjiang province last June, which it widened to other western provinces in July. Coal would still be taxed by volume rather than price, but the tax may be raised to between RMB0.3 and RMB8 per metric ton, from the current RMB0.3 and RMB5. However, inflation concerns could delay the nationwide introduction of the taxes, the paper cited unidentified sources as saying. It did not give a timeframe for the implementation.