China to charge full rate of consumption tax for naphtha and fuel oil

The Chinese finance ministry and taxation bureau has begun charging the full rate of consumption tax for naphtha and fuel oil. The levy on naphtha has risen to CNY 0.2 per litre (around EUR 25/t) and to CNY 0.1 per litre on diesel. The tax was introduced in April 2006 but the government immediately allowed a 70% tax cut, saying it would charge the full rate at the "appropriate time." The adjustment is part of China's recent efforts to curb resource-intensive sectors and promote energy efficiency.