According to the “Circular on Adjustment of Certain Product Oil Consumption Tax Policies†recently issued by the Ministry of Finance and the State Administration of Taxation, from January 1 this year, the state adjusted the consumption tax policies for naphtha and other four types of refined oil, ie The consumption tax is levied on brain oil, solvent oil and lubricating oil at RMB 0.2 per liter, and the consumption tax is levied on fuel oil at RMB 0.1 per liter.
The "Notice" stated that in order to promote the fair competition between domestic ethylene and aromatic products based on naphtha and imported similar products, the consumption tax policy for certain refined oils such as naphtha is now adjusted as follows: I. Since January 1, 2008 From day one, consumption tax is levied at 0.2 yuan per liter for naphtha, solvent oil, and lubricating oil, and consumption tax is levied at 0.1 yuan per liter for fuel oil. 2. From January 1, 2008 to December 31, 2010, imported naphtha and domestic naphtha used as raw materials for ethylene and aromatics products will be exempt from consumption tax. Naphtha sold directly by production companies should be subject to excise duties. The specific levy and tax exemption management methods for naphtha consumption tax will be formulated separately. Third, taxable naphtha, lubricating oil, and fuel oil that have been recovered from outsourced or commissioned processing are taxable consumer goods that are produced as raw materials, and they are allowed to deduct from the taxable amount of consumption tax the consumption tax already included in the raw materials.
The "Notice" stated that in order to promote the fair competition between domestic ethylene and aromatic products based on naphtha and imported similar products, the consumption tax policy for certain refined oils such as naphtha is now adjusted as follows: I. Since January 1, 2008 From day one, consumption tax is levied at 0.2 yuan per liter for naphtha, solvent oil, and lubricating oil, and consumption tax is levied at 0.1 yuan per liter for fuel oil. 2. From January 1, 2008 to December 31, 2010, imported naphtha and domestic naphtha used as raw materials for ethylene and aromatics products will be exempt from consumption tax. Naphtha sold directly by production companies should be subject to excise duties. The specific levy and tax exemption management methods for naphtha consumption tax will be formulated separately. Third, taxable naphtha, lubricating oil, and fuel oil that have been recovered from outsourced or commissioned processing are taxable consumer goods that are produced as raw materials, and they are allowed to deduct from the taxable amount of consumption tax the consumption tax already included in the raw materials.