Oil and gas ad valorem tax does not affect oil and gas product prices

The State Council announced on the 10th the amended "Provisional Regulations on the Resource Tax of the People's Republic of China," which will be fully implemented from November 1. At the same time, the "Regulations of the People's Republic of China on Cooperation in Exploitation of Offshore Oil Resources" and the People's Republic of China The "cooperative exploitation of land petroleum resources regulations" has also been revised and implemented.

The resource tax reform has been brewing in China for many years. The implementation of the amended provisional regulations on resource taxes means that the reform that has been piloted in China for more than a year will be pushed across the country, which will have an impact on China’s related fields.

More than a year of trials will expand the reform and will push it across the country

The resource tax is based on natural resources as the object of taxation. Its main purpose is to regulate the differential income of resources, reflect the paid exploitation of resources, and promote the use of resources. The taxation scope of China's resource tax includes seven tax items for crude oil, natural gas, coal, ferrous metal ore, nonferrous metal ore, and other non-metallic ore and salt.

Since the implementation of the "Provisional Regulations on the Resource Tax of the People's Republic of China" in 1994, the method for the collection of China's resource tax has always been based on quantitative measures, that is, the total amount of resources is used as a tax basis, but with the development of China's economy, this The tax calculation method has not been adapted to the requirements of economic development and building a resource-saving society.

In June 2010, the reform of China's resource tax was first piloted in Xinjiang, and on December 1, 2010, the scope of the resource tax pilot was further extended to western provinces such as Chongqing, Sichuan, and Guizhou. According to the introduction of related departments, during the pilot period of resource tax, it was steadily implemented and operated well.

According to the State Council’s decision, on November 1st, the revised provisional regulations on resource taxes will be implemented. This means that this year’s resource-based taxes will be levied in China and will be replaced by ad valorem taxation as the core content. The reform of the resource tax will be fully implemented from the pilot to the country.

Oil and gas taxation, ad valorem check, curtailing scarce resources, blind mining

According to the amended provisional regulations on resource taxes, the amount of taxes on petroleum and natural gas has been changed from the previous measurement to the ad valorem, and the tax rate is 5% to 10% of sales. The other five items are still collected from the quantity. However, some adjustments have been made to the resource tax standards for coking coal and rare earth minerals.

“The measurement of the amount of resources makes it impossible to adjust the resource tax standard in time with the changes in the price of products, which is not conducive to the regulation of taxation on the distribution of society. The ad valorem resource tax will be able to exert its role in adjusting the level of taxation and restraining it. Waste of resources," said the person in charge of the State Administration of Taxation.

Liu Shangxi, deputy director of the Institute of Finance of the Ministry of Finance, said that coking coal is a scarce resource in coal resources, and rare earth is an important strategic resource. At present, international markets have strong demand for these two kinds of resources, but domestic mining threshold is low and resource tax is low. The tax standard for reforming and adjusting these two kinds of resources effectively reflects the scarcity of resources and curbs blind exploitation of these resources.

It is worth mentioning that some industry insiders pointed out that after the reform of the resource tax, some enterprises will shift the burden of increasing tax burden costs downstream, which may push up the prices of resource products. In this regard, the relevant departments said that due to the constraints of the oil and gas pricing mechanism, this reform will not affect the price of oil and gas products.

Reform will promote energy saving and emission reduction, which will help increase local fiscal revenue

In the context of the acceleration of the global economy to the “low-carbon” era, in recent years, developed countries have introduced green finance and taxation policies to promote the protection of the environment and the rational development of resources. Under the guidance of this trend, China's resource tax reform will undoubtedly promote China's energy conservation and emission reduction.

The director of the Taxation Research Office of the Institute of Finance and Trade, Chinese Academy of Social Sciences, pointed out that the resource tax reform is a complete part of the reform of resource price formation mechanism. To a certain extent, it will limit the excessive use of resources and promote energy conservation and emission reduction, in line with the current state’s advocacy. Low-carbon economy.

** pointed out that at present, local fiscal revenue mainly comes from business tax, value added tax, and corporate income tax, VAT and corporate income tax are the central and local shared taxes, and resource taxes are completely local taxes, and resource tax reform will undoubtedly make local finances Increased income.

“Our resources such as oil and gas are relatively concentrated in the economically underdeveloped central and western regions. The implementation of ad valorem tariffs links the income from resource taxes to product prices, and is also conducive to ensuring local fiscal revenues and coordinating regional coordinated development.” The person in charge introduced.