Resource Tax Reform Is Expected To Open In The Country Next Year.

The head of the State Administration of Taxation said yesterday that the implementation of the resource tax reform in Xinjiang is a breakthrough in promoting the reform of the national resource tax. It is estimated that the actual tax rate of resource tax in Xinjiang oil and gas exploitation enterprises is less than 5% under the influence of relevant tax relief policies.

According to the notice issued by the Ministry of Finance and the State Administration of Taxation, the main measures of the resource tax reform are: the Xinjiang crude oil and natural gas resources tax has been changed from the quantity assessment to ad valorem levy in the past, and the tax rate is 5%. The notice also stipulated three categories of tax relief items. First, crude oil and natural gas, which are used for heating heavy oil in the field of oil fields, are exempt from resource tax. Two, the heavy oil, high pour point oil and high sulphur natural gas tax reduced by 40%. The three is the three oil production tax reduction of 30%.

The circular stipulates that taxpayers who collect heavy oil, high pour point oil, high sulphur natural gas and three oil recovery shall collect the resource tax according to the comprehensive reduction rate. That is to say, according to the proportion of sales of oil and gas products in the past year's compliance with the tax reduction requirements stipulated in the notice, accounting for the total sales volume of all oil and gas products, the comprehensive reduction rate of resources tax and the actual collection rate are determined, and the amount of resource tax payable is calculated.

Due to the above tax relief policy, the tax rate actually levied in the oil and gas exploitation enterprises is less than 5%. According to the data released by the State Administration of Taxation yesterday, the actual levy rate of PetroChina Xinjiang oil field branch and Tuha Oil Field Branch is 4.63% and 4.75%, respectively. The actual rate of collection of Xinjiang exploration and development center of Sinopec Northwest branch and Henan oil field branch is 3.27% and 5% respectively.

The State Administration of Taxation explained that the implementation of the tax reduction and exemption tax policy for oil and gas enterprises is a feasible method in accordance with the comprehensive reduction rate, because many oil and gas companies are cross provincial and cross regional operations, and the three oil recovery and other conventional tax cuts are professional and technical. The tax authorities at the grass-roots level have difficulty in grasping and verifying the situation and quantity changes of various oil and gas tax reduction and exemption projects. The comprehensive reduction rate can reduce the workload of taxpayers and grass-roots tax departments, improve the efficiency of tax collection and management, and facilitate the implementation of the tax reduction policy for oil and gas resources tax related projects.

The responsible person said that the implementation of the resource tax reform in Xinjiang is a breakthrough to promote the reform of the national resource tax. From the perspective of the implementation of the resource tax reform, the pilot project in Xinjiang will help to provide experience and reference for the comprehensive implementation of the resource tax reform.

Regarding this, Gao Peiyong, deputy director of the Institute of Finance and trade of the Academy of Social Sciences, said that preparations for the resource tax reform have been quite adequate. He predicted that the pilot project in Xinjiang would be a few months. By next January 1st, the resource tax reform is expected to be fully promoted across the country.

Jia Kang, director of the Fiscal Science Research Institute of the Ministry of finance, also said yesterday that the resource tax reform initiated in Xinjiang is an obvious signal to adjust the economic structure. Such a reform should have greater coverage according to logical analysis. Jia Kang stressed that the government should raise the utilization ratio of resources effectively through tax levers, and promote energy conservation and consumption reduction and technological development of enterprises.