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China's largest oil and gas producing areas took the lead in resource tax reform

China's largest oil and gas producing areas took the lead in resource tax reform

  • Categories:announcement
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  • Time of issue:2019-01-19 11:27
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(Summary description)China's largest oil and gas producing areas took the lead in resource tax reform

China's largest oil and gas producing areas took the lead in resource tax reform

(Summary description)China's largest oil and gas producing areas took the lead in resource tax reform

  • Categories:announcement
  • Author:
  • Origin:
  • Time of issue:2019-01-19 11:27
  • Views:
Information

The central government has decided to take the lead in the reform of resource taxes and fees in Xinjiang, levying resource taxes on crude oil and natural gas on an AD valorem basis instead of volume.

According to China Chemical News on May 24, from May 17 to 19, the Central Committee of the Communist Party of China and the State Council held a symposium in Beijing in Xinjiang, the central government decided to take the lead in Xinjiang resource tax reform, the crude oil, natural gas resource tax based on price instead of volume; Qualified enterprises in poverty-stricken areas in Xinjiang will be given the preferential treatment of "two exemptions and three halves" of enterprise income tax. Central government investment will continue to favor the Xinjiang Autonomous Region and the XPCC. During the 12th Five-Year Plan period, Xinjiang's investment in fixed assets will double that during the 11th Five-Year Plan period.

Xinjiang is an important petrochemical base and energy production base in China. It is also the largest oil and gas producing area in China at present, with rich reserves of various resources. Jiang Jiemin, general manager and secretary of the CPC Central Committee of China National Petroleum Corporation (CNPC), pointed out in a speech at the central symposium on Xinjiang work that in the past 30 years, CNPC has invested more than 300 billion yuan in Xinjiang, and formed the production capacity of crude oil 18 million tons/year, natural gas 23 billion cubic meters/year, crude oil processing 20 million tons/year and ethylene 1.2 million tons/year. By the end of 2009, the proven oil reserves were 3 billion tons and natural gas reserves were 1.3 trillion cubic meters.

Since 2010, the oil in a series of decisions according to the central deployment, formulate the development planning and construction plan, proposed oil and gas equivalent to 50 million tons by 2015, 2020, 60 million tons, and strive to keep stable 20 years refining capacity reached 26 million tons and 30 million tons respectively, to improve product sales network, efforts to ensure market supply.

Jiang jiemin, said the central work in xinjiang forums further clear about the work in xinjiang in the party and national undertaking development an important strategic position in the global, petrochina will give full play to the largest backbone role, speeds up the oil and gas development in xinjiang, in the next 10 years by increasing investment, building xinjiang into the largest production base of oil and gas, refining, chemical industry base, oil reserve base, engineering and technical service base and western strategic channel of oil and gas.

It is reported that China has been using the method of levying oil and gas resources tax based on production. The standard of oil tax has been gradually raised from 12 yuan to 24 yuan per ton, which is far behind the pace of international oil price rise. With China's refined oil pricing system increasingly in line with international standards, the gap is even more pronounced. The industry generally believes that the reform of resource taxes and fees is the first pilot in Xinjiang, and the oil and gas resource tax compensation mechanism is conducive to the development of the western region.

An Tinfu, a professor at the School of Finance and Economics at Renmin University of China, said resource taxes are local taxes, and the reform could raise local fiscal revenue to support the development of public utilities. In addition, since resource consumption is mainly in the eastern coastal areas, the pilot of resource tax in Xinjiang will help balance the income gap between the east and the west.

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