BEIJING (XFN-ASIA) - China has reiterated that it will introduce a fuel tax
at an "appropriate" time, with the international market situation and domestic
pricing mechanisms among the key factors influencing the timing, said Zeng
Xiaoan, a department vice director with the finance ministry.
Zeng made the comments at an online briefing on the central government's
website (www.gov.cn).
"The launch of fuel tax requires some essential conditions, such as
relatively stable oil prices and a reasonable oil product pricing mechanism," he
said.
China currently caps prices of oil products, which mean refiners can not
pass the rising costs of crude to end-users.
China raised gasoline prices by 16 pct and diesel by 18 pct on June 20 to
reflect rising international energy prices. Crude has traded in the 140 usd
levels recently before coming off these highs, compared with less than 100 usd
at the beginning of the year.
The long-delayed fuel tax is intended for retail gasoline and diesel sales,
replacing road taxes.
Zeng said the government plans to expand the consumption tax coverage, to
include polluting and energy intensive products.
zachary.wei@xfn.com
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