Curb on coal and oil exports

Curb on coal and oil exports

PlanetArk

27 December 2006

BEIJING - China said on Tuesday it would keep taxing crude oil and coal exports in 2007, continuing a curb on overseas sales of energy resources.

The Ministry of Finance said on its Web site (www.mof.gov.cn) that the new tax policy would take effect from Jan. 1 next year, but it did not specify the tax rate for either fuel.

Beijing started charging a 5 percent on both crude and coal exports from Nov. 1 in a move which could help divert more supply to meet rising domestic demand.

The policy could further cut back China's crude oil exports, which dropped some 20 percent in the first 11 months of the year to 5.43 million tonnes (119,000 barrels per day) as shown in official customs data.

China, the world's top coal producer and consumer, exported 12 percent less of the fossil fuel in the January-November period versus a year ago at 57.4 million tonnes, customs has said.

REUTERS NEWS SERVICE