China imposes nationwide tax on energy, resources

Beijing: China is imposing a nationwide tax on production of oil and other resources to raise money for poor areas.

Communist leaders have said the tax is meant to ensure poor areas that produce much of China’s oil and other resources receive more of the revenue. A key source of anti-government anger in Tibet and other minority regions is that local people get little of the wealth extracted by state oil and mining companies.

The tax will be effective from 1 November and applies to crude oil, natural gas, rare earths, salt and metals. Oil and gas sales will be taxed at a rate of 5 to 10 percent of their sales value.

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The move expands an experimental tax imposed last year on oil production in the northwestern Muslim region of Xinjiang.

AP