China to take oil, gas sales tax nationwide

BEIJING, Oct 11 (AFP): China has said it will roll out a tax on crude oil and natural gas sales nationwide from next month as Beijing looks to save energy and cut emissions, while doubling the maximum levy on rare earth metals. The tax on domestic sales of crude oil and natural gas, first trialled in the far-western Xinjiang region and later extended to nearby areas, will go national from November 1, China's State Council, or cabinet, said yesterday. The sales tax-currently ranging from five to 10 per cent will be widened to include other resources such as rare earths and coking coal, which is used largely in steel production, "when the conditions are ripe", the statement said. But the move will have limited impact on inflation as suppliers will not be able to raise household gas and fuel prices, which are still tightly controlled by the government.