China mulls resource tax on coal
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China is considering imposing a new resource tax on coal before the year’s end, which would cause jitters among miners.
The resource tax, likely determined at 3-5 percent of the coal sales value, would replace the current tax, which is equivalent to about 1 percent of sales value.
In June, a pilot resource tax was applied to crude oil and natural gas in Xinjiang. Two months later, it was rolled out to more places in western China.
If the new tax is adopted, power producers who have been struggling with mounting costs will be hit hard, because the government sets electricity prices, and they are unable to pass the extra cost onto users.
China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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