TAX NEWS - 2010

China resource tax to go nationwide, tax rates undecided

China reaffirmed on Thursday its plans to eventually extend nationwide a resource tax being introduced in the western region of Xinjiang.

The government in the far western region of Xinjiang started levying a 5 percent resource tax on crude and natural gas sales, instead of output, in order to boost local fiscal revenues.

"As for the resource tax issue, the central government has already decided to start a trial programme in Xinjiang, and the scheme will be promoted nationwide based upon the experiences (in Xinjiang)," Du Ying, a vice chairman of the National Development and Reform Commission, told a news conference on Thursday.

"But the tax rates for different resource products may be different," Du said.

Premier Wen Jiabao said earlier this week that the government was on the verge of expanding the resource tax trial throughout China's western region and that it would also cover coal production.