China introduces tax on energy in Xinjiang

China’s government introduced a new tax on sales of crude oil and natural gas in the western Xinjiang Uygur Autonomous Region, the Ministry of Finance (MOF) said. The 5% tax is aimed to increase revenue for the local government of the resource-rich Xinjiang, and is part of a support package for the region unveiled at a central work conference held in Beijing. The new measure, a shift from current taxes based on output, is also a move to save natural resources by raising the consumption cost. The government intends to impose the tax nationwide after regional trials. (June 3, 2010)