China unveils fuel-taxation scheme

China unveiled a long-awaited scheme on fuel taxation and reform of the country’s refined oil pricing mechanism to solicit public opinion. The scheme, expected to be put into effect on January 1, 2009, will annul six types of fees on road maintenance and management. Meantime, it will raise the gasoline tax from the current 0.2 yuan (US$0.02) per liter to one yuan (US$0.14) per liter and diesel tax from 0.1 yuan (US$0.0146) per liter to 0.8 yuan (US$0.11) per liter. The government promised that the country’s existing fuel price would not be raised because of the reform. The National Development and Reform Commission, Ministry of Finance, Ministry of Transportation and State Administration of Taxation jointly released the scheme. (December 5, 2008)