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China to raise oil product consumption tax

Updated: Nov 28,2014 7:41 PM     Xinhua

BEIJING — China will raise the consumption tax on oil products beginning on Nov 29.

It is the first adjustment since the previous increase in 2009, the country’s top finance and taxation departments jointly announced on Nov 28.

The consumption tax on gasoline will rise from 1 yuan ($0.16) to 1.12 yuan per liter while that on diesel from 0.8 yuan to 0.94 yuan per liter, according to the Ministry of Finance and the State Administration of Taxation.

The measure will take effect on Nov 29.

The tax adjustment will offset the impact from the crude oil price drop in the international market, as analysts estimated fuel costs for drivers are likely to remain flat after the move.

China imposed a consumption tax in 1994 on consumer goods with a high energy cost and high pollution in order to guide production and consumption toward being environmentally-friendly and to promote a sustainable economic growth model.

Over ten countries including Russia, Australia, New Zealand and France have raised their oil product consumption tax since 2012 to ensure green development.