Circular on Continued Implementation of the Consumption Tax Policy for Some Naphtha and Fuel Oil
Circular on Continued Implementation of the Consumption Tax Policy for Some Naphtha and Fuel Oil
Circular on Continued Implementation of the Consumption Tax Policy for Some Naphtha and Fuel Oil
Cai Shui [2011] No. 87
September 15, 2011
The finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and city specifically designated in the state plan, the State Administration of Taxation, Shanghai Headquarters of the People's Bank of China, all branches and business management departments of the People's Bank of China, all central sub-branches of the People's Bank of China in capital cities (metropolises) and in sub-provincial cities,
For the purpose of promoting the development of olefin chemical industry, the issues concerning the continuation of tax refund (exemption) policy for consumption tax on naphtha and fuel oil used in ethylene and arene chemical products are clarified as follows upon the approval of the State Council:
I.As of October 1, 2011, the levying of consumption tax shall be resumed on naphtha and fuel oil that are sold by naphtha and fuel oil manufacturing enterprises (hereinafter referred to as manufacturing enterprises) and that are used in the production of ethylene and arene chemical products.
II.As of October 1, 2011, the self-produced naphtha and fuel oil of manufacturing enterprises that are used in the production of ethylene and arene chemical products shall be exempted from consumption tax temporarily in light of the actual consumption quantity.
III.As of October 1, 2011, the consumption tax included in the naphtha and fuel oil purchased by enterprises that produce ethylene and arene with naphtha and fuel oil (hereinafter referred to as using enterprises) and used in the production of ethylene and arene chemical products shall be refunded temporarily in light of the actual consumption quantity.
The calculation formula for refunding of consumption tax included in naphtha and fuel oil is:
Amount of refundable consumption tax = actual consumption quantity of naphtha and fuel oil * unit tax amount of consumption tax on naphtha and fuel oil.
......
Cai Shui [2011] No. 87
September 15, 2011
The finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and city specifically designated in the state plan, the State Administration of Taxation, Shanghai Headquarters of the People's Bank of China, all branches and business management departments of the People's Bank of China, all central sub-branches of the People's Bank of China in capital cities (metropolises) and in sub-provincial cities,
For the purpose of promoting the development of olefin chemical industry, the issues concerning the continuation of tax refund (exemption) policy for consumption tax on naphtha and fuel oil used in ethylene and arene chemical products are clarified as follows upon the approval of the State Council:
I.As of October 1, 2011, the levying of consumption tax shall be resumed on naphtha and fuel oil that are sold by naphtha and fuel oil manufacturing enterprises (hereinafter referred to as manufacturing enterprises) and that are used in the production of ethylene and arene chemical products.
II.As of October 1, 2011, the self-produced naphtha and fuel oil of manufacturing enterprises that are used in the production of ethylene and arene chemical products shall be exempted from consumption tax temporarily in light of the actual consumption quantity.
III.As of October 1, 2011, the consumption tax included in the naphtha and fuel oil purchased by enterprises that produce ethylene and arene with naphtha and fuel oil (hereinafter referred to as using enterprises) and used in the production of ethylene and arene chemical products shall be refunded temporarily in light of the actual consumption quantity.
The calculation formula for refunding of consumption tax included in naphtha and fuel oil is:
Amount of refundable consumption tax = actual consumption quantity of naphtha and fuel oil * unit tax amount of consumption tax on naphtha and fuel oil.
......