China to Reform Resource Taxes

In the meantime, the Ministry of Finance says China will introduce resource tax reform at what it calls a "proper" time to promote energy saving and environmental protection. In a statement on its Website, the ministry says overhauling the taxation system is a priority for 2010. Few details about the move are provided.

Analysts expect the reform will shift taxation of coal, metals, oil and gas extraction to revenues rather than volume. The change will likely boost production costs of resource miners. The country has been looking to revamp the resource tax since 2006. The ministry says it will also improve the property tax system.