Ministry of Transport experts explain two major conditions for the introduction of fuel tax

On May 27, at the highway seminar held by the Ministry of Communications and the World Bank, Shi Baolin, the deputy director of the Research Institute of the Ministry of Communications, explained to reporters the conditions for the introduction of China's fuel tax, including the external price of oil and the government’s fuel tax. Evaluation becomes an important condition for tax reform.

The argument that the fuel tax will be introduced “at the right time” has been mentioned several times, but the rising oil prices in the past two years have delayed the timing of the introduction of the fuel tax. In mid-January of this year, the price of China's refined oil market appeared loose, with the first price cut since May 23, 2005, after oil prices rose four times. When the fuel tax was introduced has become a topic of concern.

In response, Shi Baolin stated that there are two conditions for promoting the introduction of the fuel tax. First, whether oil prices can fall back to a certain extent; the other is how the government’s policy-makers evaluate the fuel tax externally. If it is simply considered from the price of oil, then short-term The internal fuel tax is still not easy to introduce. If the government starts from the perspective of energy conservation and regards fuel tax collection as a means to control energy consumption and promote efficient energy saving, then China should quickly implement tax reform.

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