2 major oil companies issued oil consumption tax levy details

Following the guidance issued by Sinopec on the levying of an oil consumption tax by the State Administration of Taxation, PetroChina recently issued an internal announcement on oil consumption tax. The industry believes that up to now, the two major oil companies have issued internal rules on the collection of oil consumption tax, which will play a "wind vane" role in the introduction of the next step in the consumption tax rules of the State Administration of Taxation.

Analyst Yan Lina pointed out that from PetroChina’s documents, oil-adjusting raw materials are still the key reform direction of consumption tax, but chemical products that cannot be regulated as excise-taxable oil products do not fall within the taxable scope, while raw materials produced by PetroChina are supplied to CNPC to reconcile petrol enterprises. Can be tax-free or enforce the internal price.

“Although the details of PetroChina did not appear as a list of 30 tax-exempt products like Sinopec, but a series of provisions were made on the scope of product expropriation, and the basis for the collection of products was clarified to some extent. With the announcement of the recent internal interpretation documents of Sinopec and PetroChina, it seems that There is a certain concept about the direction of future consumption tax collection,” she said.

The announcement pointed out: First, chemical products that cannot be used for excise taxable taxable oil products do not fall within the taxable scope; second, petrochemical products that meet national standards or industry standards and do not belong to excise taxable oil products, and carry out relevant filing procedures in accordance with Circular No. 47. After that, there is no need to declare the consumption tax; Third, there is no industry standard or national standard, and as a chemical raw material for Other petrochemical products used by the PetroChina Group's affiliated companies to produce chemical products (excluding consumption taxable and taxable oil products), the consumption tax is not declared; Fourth, petrochemical products that are directly and indirectly sold to companies outside the China National Petroleum Corporation, have no industry standards or national standards, and cannot be determined for user use and can be used to directly modulate consumption taxable and taxable oil products. From January 1 this year, their corresponding finished products The consumption tax tax items and tax rate calculation and payment of consumption tax shall not be classified as the taxable goods of the 7 categories of consumption tax such as gasoline and diesel, and the consumption tax shall be declared in accordance with the provisions of the bulletin of No. 47 for naphtha.