SHAFAQNA (Shia International News Association)- China has announced its decision to implement a tax increase on fuel consumption.
According to the official Xinhua news agency on Friday, China’s Ministry of Finance and the State Administration of Taxation will put into effect the tax increase on gasoline and diesel consumption on November 29.
Under the new law, the consumption tax on gasoline will increase from one yuan (USD 0.16) per liter to 1.12 yuan (USD 0.18). The tax on diesel will also rise from the current 0.8 yuan (USD 0.13) per liter to 0.94 yuan (USD 0.15).
This is the first time that the Chinese government has decided to increase fuel consumption tax since 2009.
China ranks first among the world’s net oil importers with Beijing importing around two-thirds of its oil needs.
China’s measure to increase fuel consumption tax comes as world oil prices have dropped to fresh four-year lows following the recent decision by the Organization of the Petroleum Exporting Countries (OPEC) to maintain its current level of production.
According to reports, the oil exporter group will not alter its production level of 30 million barrels per day where it has stood for three years.