Development and Reform Commission may consider lowering fuel consumption tax rate

Yesterday, it was reported that the National Development and Reform Commission organized relevant conferences to consider lowering the rate of impending fuel consumption tax. Prior to the National Development and Reform Commission, the Ministry of Industry and Information Technology and other relevant ministries responsible for repeatedly emphasized the "burden off" principle, in addition to refined oil prices will be lowered next year, New Year's Day, do not rule out the possibility of fuel consumption tax rates are also reduced. However, experts yesterday said to the Morning Post that the tax rate is not high at all, and the price of refined oil should be lowered.
According to Xinhua Overseas Financial Report, the National Development and Reform Commission is considering reducing the fuel consumption tax rate to be levied on the New Year's Day next year. According to the report, the National Development and Reform Commission organized a meeting on December 16th to discuss the best tax rate for fuel consumption tax with fuel trading companies, refineries from Shandong, and power generation companies. If adjustments are made, it is expected that the tax rate will be adjusted before next Wednesday.
Earlier this month, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Transport, and the State Administration of Taxation jointly issued an announcement and publicly solicited opinions on the “Reform Program for Refined Product Oil Taxes and Fees”. According to this plan, from the New Year's Day next year, the six expenses such as road maintenance fees will be cancelled. Without increasing the current price of refined oil products, the unit tax for gasoline consumption tax will be raised from 0.2 yuan per litre to 1 yuan, and diesel will be increased from 0.1 yuan per litre to 0.8 yuan.
According to the consultation report issued by the National Development and Reform Commission, feedback from private car owners is the largest, accounting for 58.5% of the total. The opinions and suggestions of the various circles on the “Programme” include appropriate reductions in taxes and the publication of specific calculation methods and procedures for taxation; taking into account the sharp fall in international crude oil prices, domestic refined oil prices should be reduced as soon as possible; of course, there are also proposals to increase taxation in order to achieve Promote the purpose of energy conservation and emission reduction.
Liu Wei, deputy dean of the Taxation Institute of Central University of Finance and Economics, believes that the price of refined oil should be reduced, not tax rate. He pointed out that the current price of refined oil is equivalent to the price of crude oil at US$83.5 per barrel, but now the international oil price has dropped to more than 40 US dollars per barrel. Refining companies have considerable profits and should be transferred to the government in the form of taxes.
In addition, Liu Xie believes that the consumption tax for gasoline and diesel oil must be levied quantitatively. When oil prices fluctuate greatly, they need to be adjusted frequently, which is troublesome. Relatively speaking, if a fixed percentage of the price is levied, it is actually more reasonable. He explained that the tax revenue will rise as the price of oil rises, and no special income will be levied; it will also decrease as the price falls, and the benefits of falling oil prices are really being given to companies and consumers.
The National Development and Reform Conference pointed out that next year we must strive to achieve new breakthroughs in the reform of key areas and key links. Accelerate the reform of resource product prices and environmental protection charges. The National Bureau of Commodity Prices requested that the reform of resource prices and environmental protection charges be actively and steadily promoted, and steadily advance the reform of refined product oil prices and taxes.
The National Development and Reform Commission’s circular for soliciting comments points out that it will seriously study the opinions and suggestions put forward by various circles, and pay close attention to improving the “plan” to the State Council and formally announce after review.

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