China to Impose Import Taxes on Key Blending Fuels
China will impose taxes on imports of light cycle oil, mixed aromatics and diluted bitumen beginning June 12, to curb imports accused of polluting the environment and exacerbating a fuel surplus, according to a May 14 statement, Reuters reported. A 1.52 yuan (0.24 cent) per liter consumption tax on imported LCO and mixed aromatics will be implemented, while a 1.20 yuan per liter levy will be set on diluted bitumen. The new trading barrier will inflate the cost of buying the fuels from regional suppliers who have in recent years sold China record volumes of these goods, taking advantage of tax loopholes, Reuters reported.
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"A small number of companies have imported record amounts of these fuels and processed them into sub-quality fuels which were then funneled into illicit distribution channels, threatening fair market play and also causing pollution," the Ministry of Finance said in a statement.