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China may raise resource tax

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-06-15 16:55

China is likely to raise its resource tax as part of efforts to encourage energy efficiency, according to Shanghai Securities News.

Sources said the tax authorities propose to adjust the method for calculating the resource tax to reflect the price of the products.

China currently uses a volume-based calculation to assess resources tax.

Han Wenke, director of theNational Development and Reform Commission's Energy Research Institute, said yesterday that the timetable is still unavailable and the NRDC will adjust the tax.

An expert with the Ministry of Finance said the tax will be charged by local governments to help raise local revenue.

The pricing mechanism of China's resources doesn't reflect the resource scarcity, the supply and demand and the pollution costs, according to Feng Fei, director of the Industrial Economy Department of the Development Research Center under the State Council.