Diesel consumption tax from 2013 onwards

The State Administration of Taxation issued a new deal on November 6, 2012. In order to combat tax evasion, the government imposed a unified tax on liquid petroleum products. The New Deal stipulated that “taxpayers using crude oil or other raw materials for production and processing are liquid at normal temperature and pressure conditions (asphalt). Excluding) products, excise tax shall be levied according to regulations." And it shall be implemented on January 1, 2013.

Previously, the liquid products included in the taxation scope of the State Administration of Taxation included gasoline and diesel oil, naphtha, fuel oil, solvent oil, and lubricating oil. The unit tax for gasoline, diesel oil, naphtha, solvent oil, and lubricant oil was 1.0 yuan per liter. The unit tax for diesel and fuel oil consumption tax is 0.8 yuan per litre; aviation kerosene is suspended. After the adjustment policy, products such as MTBE, aromatic hydrocarbons, and mixed fragrant used for oil and chemical raw materials are also included in the collection scope, and are also collected at a rate of RMB 1 per litre.

Luo Lin, an analyst at Zhuo Chuang, told reporters that some of the oil production companies had issued MTBE invoices to avoid tax at the time of gasoline sales. After the New Deal was introduced, it would effectively combat such tax avoidance. At the same time, some local refineries also said that due to the narrow space for tax avoidance, traders on the market in various names will have a significant reduction.

"For the production of MTBE enterprises, on the one hand, Sinopec and CNPC's products are mainly self-use and rarely go out. The impact of the levy is limited. On the one hand, local refineries and private enterprise products are mostly of low purity and suitable for use. In terms of reconciling petrol, chemical industry use accounted for a very low proportion, and they also became the largest recipients of the implementation of the announcement,” said Ting Ting, an analyst at Treasure Island Refined Oil Market.

According to Treasure Island, in 2012, the domestic MTBE manufacturers were hit by tight raw gas resources and insufficient demand in the gasoline market. The operating rate of the manufacturers continued to remain low, around 35% to 40%. Yu Ting expects that by 2013, the implementation of this policy will inevitably reduce the circulation speed of MTBE resources. Domestic MTBE manufacturers are facing the triple pressure of lack of upstream raw materials, increase of intermediate taxes, and lack of downstream demand, or will usher in the reshuffle of the industry. .

The New Deal will directly combat the market cost advantage of reconciling gasoline. Taking Shandong aromatic gasoline as an example, the density is 0.72~0.73, for example, after the consumption tax is collected, the price will increase by 369~389 yuan/ton. And in North China to reconcile the country's 93 # gasoline program to add, the proportion of aromatic gasoline is about 30%. It can be seen that after increasing the consumption tax, the cost of reconciling Guosan 93# gasoline will increase by approximately RMB 410.3 to RMB 416.3/t.

At present, the liquid oil resources that are widely distributed in the domestic market are mostly products of local enterprises. The use of these resources is basically used as a blending oil. Chen Ching, an analyst with Zhuo Chuang, said that if the cost advantage of raw materials is reduced, the oil distillers can only pick the raw materials with relatively good quality, and the profit of oil-conversion will inevitably drop. It is expected that the oil-conversion market will shrink. . On the other hand, in order to relieve the pressure of rising costs, the reconciliation business will gradually turn to the procurement of raw materials for the national standard, which will provide a strong boost to the upgrading of oil quality. "As far as the refined oil market is concerned, after the shrinking oil market, the share of 'regular forces' will inevitably increase, and the 'monopoly' status of the two major groups will become stronger."

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