The policy of consumption tax on refined oil caused the CPPCC members to question that taxation of naphtha would not be possible

Member of the National Committee of the Chinese People's Political Consultative Conference, academician of the Chinese Academy of Engineering and vice chairman of China Petrochemical Corporation Wang Jiming said in an interview with reporters that he believes that the taxation of naphtha in refined oil is unreasonable and even seriously affects the development of the domestic petrochemical industry. To this end, he has submitted a proposal on adjusting the refined oil consumption tax policy to this conference.

Wang Jiming said that in order to adjust the consumption structure and curb waste, and avoid individual companies confusing product name and other tax evasion problems, the state made a major adjustment to the refined oil excise tax policy in April 2006, expanding the scope of levying from petrol and diesel to naphtha. Oils, solvent oils, lubricants, and aviation kerosene. It also imposes a 0.2 yuan consumption tax on naphtha per liter.

Wang Jiming said that in fact, the naphtha produced by domestic petrochemical and petroleum companies is mostly self-use or internal raw material for mutual supply between companies, and is rarely sold as an end product. Taking China Petrochemical Corporation as an example, in 2005, 21.5 million tons of naphtha was produced, of which 15.66 million tons were used by enterprises and 5.41 million tons were supplied to each other. The two together accounted for 98% of the total naphtha output, indicating that the naphtha The vast majority of oil is used as a basic raw material for petrochemical production and is basically not used for end-use consumption. Therefore, the collection of consumption tax on such basic raw material products brings many drawbacks: First, the consumption tax on naphtha cannot achieve the purpose of restraining consumption and reducing energy consumption. The second is that the levying of naphtha consumption tax has seriously affected the development of the domestic petrochemical industry. After the levy of domestic consumption tax on naphtha, the tariffs on ethylene and downstream products have not been raised at the same time. On the one hand, the production costs of domestic petrochemical products have increased substantially. On the other hand, raw materials for large ethylene joint ventures such as Nanjing Yangba and Shanghai Secco will also increase. cost. Moreover, the consumption tax as an in-quote tax exempts the price space of the company's products. The production company bears all the tax and price risks. At the same time, the consumption tax acts as a VAT tax base, which also increases the burden on the company.

Wang Jiming said that the country intends to achieve the purpose of energy conservation by imposing a consumption tax on refined oil and restraining consumers' consumption behavior. However, from the perspective of implementation, the effect of levying consumption tax on naphtha is not satisfactory. Therefore, it is recommended that the following adjustments should be made by the state to the consumption tax for refined oil products: First, the new and adjusted product tax excise tax heads should implement the out-of-price tax system. The second is to adjust the naphtha consumption tax policy and clarify the exemption of the consumption tax on naphtha as raw materials for ethylene, aromatics and chemical fiber industries that are transferred between internal enterprises and internal enterprises.

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