Resource Tax Reform Has Been Effective This Year Or In The Western Region.

Recently, the news came out of the fourth session of the eleventh the Xinjiang Uygur Autonomous Region people's Congress, Xinjiang 2010.

As the first pilot resource tax in China

And last year's western development conference announced that the resource tax reform policy will be extended to the 12 provinces (regions and cities) of the western region.

Reporters then learned from relevant people in Inner Mongolia that the Ministry of Finance and the State Administration of taxation have jointly issued documents. From December 1st last year, the tax on oil and gas resources in Inner Mongolia was changed from "quantity assessment" to "ad valorem levy", with a tax rate of 5%. This means that the promotion has quietly started, but the rest of the western provinces (autonomous regions and municipalities) will only be able to enjoy the fruits of reform until this year.

"Resource tax reform will surely be extended to other provinces, autonomous regions and municipalities in the western region this year.

And after the reform, the local will get more development funds, and the benefits to the local economy are obvious.

Moreover, reform is also good for resource statistics and protection. "

Han Xiaoping, chief information officer of China energy network, told reporters yesterday.

In his view, resource tax reform should also be promoted to the whole country as soon as possible, including resource sharing in Shandong and other resource provinces.

However, there are still different views on this point.

The China Petroleum and Chemical Industry Federation told reporters that after the resource tax reform was launched in Xinjiang, CNPC needs to raise about 5 billion 500 million yuan in taxes, and Sinopec needs to add about 1 billion 500 million yuan in revenue.

If the reform is further extended to other provinces (regions and cities) in the central and western regions, and even further expanded to the country, it will have a great impact on the domestic petroleum and petrochemical industry.

The promotion of resource tax reform will undoubtedly bring some impact to the profits of energy companies.

"The 12 provinces (regions and cities) of the Western China include second major oil fields, Changqing Oilfield, southwest oil and gas field, and Puguang gas field of Sinopec.

It can be said that if the resource tax reform is promoted in the west, half of China's oil and gas production will be included in the resource tax reform coverage.

Professor Han Xuegong, an oil expert in Beijing, said in an interview with our reporter.

According to He Wei, an international analyst at Jiao Yin, after the western provinces (districts and cities) were included in the scope of resource tax reform, the profits affected by PetroChina and Sinopec were about two times the impact of Xinjiang's resource tax reform, which affected about 2 cents per share.

"It is expected that the profits of oil companies will be affected in the short term, but in the long run, the energy demand will increase at the same time because the western economy will be greatly promoted due to the change of resource tax," he said.

An expert from CNPC told reporters yesterday that there are many large projects in Inner Mongolia and other places, and the demand for energy is increasing rapidly. This will be more significant after the resource tax reform.

He also said that the state would consider hedging the resource tax reform from other channels, which would not seriously damage the interests of energy companies.

The Federation of petroleum and chemical industry also suggests that relevant compensation methods should be studied, such as adjusting the threshold of special income.