China slaps consumption tax on fuel blending components

BEIJING (Reuters) – China announced late on Friday that a series of fuel blending components would be subject to consumption tax with immediate effect, according to a joint statement of the Ministry of Finance and the State Taxation Administration.

The consumption tax rate on isooctane, a blending component for gasoline, would be the same as for gasoline, the statement said.

The tax on all types of white oil — crude white oil, light white oil and some industrial white oil — would be levied at the same rate as for solvent oil. These fuels are often used for making diesel fuel.

The tax on other products, like mixed aromatics and heavy aromatics, also used for making gasoline, would be levied at the same rate as for naphtha.

(Reporting by Sophie Yu in Beijing and Chen Aizhu in Singapore; Editing by Simon Cameron-Moore)