According to media reports from Inner Mongolia, according to the documents issued jointly by the Ministry of Finance and the State Administration of Taxation, from December 1st, the resource tax on crude oil and natural gas in Inner Mongolia was changed from “relevant calculation†to “ad valorem assessmentâ€. 5%. So far, the resource tax reform new policy has begun to be implemented in 12 provinces, autonomous regions and municipalities including the Inner Mongolia.
Earlier, the resource tax reform has taken the lead in Xinjiang. From June 1 this year, the Xinjiang crude oil and natural gas resource tax will be levied at an ad valorem rate of 5%. In July, Premier Wen Jiabao of the State Council said at the Western Development Conference that the taxes on coal, oil, natural gas and other resources were changed from quantitative to ad valorem. After the Xinjiang pilot, it will be implemented in 12 provinces, autonomous regions and municipalities in the west.
Yan Xinna, an analyst at Guosen Securities, said that the resource tax reform will significantly increase local fiscal revenue. The retention of resource taxes has created conditions for accelerating industrial upgrading and improving the local investment environment. Due to the short industrial chain of the primary mining industry, it is unable to drive the employment and economic development of the resource. Therefore, the upgrading of the deep processing industry in the western region has not only reduced the imbalance between regions, but also reduced the pressure on long-distance transportation lines. From a holistic perspective, this will benefit local governments in resource development and conversion, and will help China's energy self-sufficiency rate to rise.
Earlier, the resource tax reform has taken the lead in Xinjiang. From June 1 this year, the Xinjiang crude oil and natural gas resource tax will be levied at an ad valorem rate of 5%. In July, Premier Wen Jiabao of the State Council said at the Western Development Conference that the taxes on coal, oil, natural gas and other resources were changed from quantitative to ad valorem. After the Xinjiang pilot, it will be implemented in 12 provinces, autonomous regions and municipalities in the west.
Yan Xinna, an analyst at Guosen Securities, said that the resource tax reform will significantly increase local fiscal revenue. The retention of resource taxes has created conditions for accelerating industrial upgrading and improving the local investment environment. Due to the short industrial chain of the primary mining industry, it is unable to drive the employment and economic development of the resource. Therefore, the upgrading of the deep processing industry in the western region has not only reduced the imbalance between regions, but also reduced the pressure on long-distance transportation lines. From a holistic perspective, this will benefit local governments in resource development and conversion, and will help China's energy self-sufficiency rate to rise.
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