Four Chinese provinces raise resource tax on coal

SteelOrbis Shanghai Chinese State Taxation Bureau announced on April 5 that the resource tax on coal was increased in Shaanxi, Jiangsu, Jiangxi and He Longjiang provinces, effective from April 1 2006. According to the announcement, the tax in Shaanxi rises to RMB 3.2 per ton, that in Jiangsu to RMB 2.5 per ton, that in Jiangxi to RMB 2.5 per ton, and that in He Longjiang to RMB 2.3 per ton. The Ministry of Finance and the State Taxation Bureau had already adjusted the coal resource tax in Henan, Anhui, Ningxia, Chongqing, Guizhou, Yunnan, Fujian and Shandong provinces before the latest practice. According to the Provisional Code on Resource Tax dated December 25, 1993, the coal resource tax may range from RMB 0.3 to RMB 5 per ton. The aim of increasing the coal resource tax is to maintain an overall regulation on coal industry, and to improve the utilization of coal resources.