China Latest Policies on Consumption Tax

 

1. As regards the products made or processed from crude oil or other raw materials except asphalt and showing liquid state under normal temperature and pressure, their consumption taxes shall be levied or not by the following principles:

(1) Where the products are consistent with the taxation regulations on gasoline, diesel, naphtha, solvent oil, aviation kerosene, lubricating oil and fuel oil, their consumption taxes shall be levied as per the corresponding regulations;

(2) As regards products except those aforesaid, where they are consistent with relevant national standards or petrochemical industrial standards and their quality certificates issued by provincial-level quality supervisors at least are registered in advance with governing taxation authorities, they may be exempt from consumption tax; otherwise, they shall be subject to consumption tax as naphtha.

2. As regards products made or processed from crude oil or other raw materials including asphalt, where they are consistent with relevant national standards or petrochemical industrial standards on asphalt products and their quality certificates issued by provincial-level quality supervisors at least are registered in advance with governing taxation authorities, they may be exempt from consumption tax; otherwise, they shall be subject to consumption tax as fuel oil.

3. The practices below by any entity or person outside industrial enterprises shall be deemed as production of taxable consumer goods and therefore shall be subject to consumption tax:

(1) Sale of consumption tax-free goods in the form of consumption-taxable goods;

(2) Sale of consumption tax-lower goods in the form of consumption tax-higher goods.

4. This Announcement shall come into force as of January 1, 2013.


The State Administration of Taxation of China

November 6, 2012