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The ministry of finance and the state taxation administration recently announced the extension of consumption tax exemptions on industrial oil products recycled from waste mineral oils, including lubricant base oil, gasoline and diesel oil, until 31 december 2027. The provinces include tianjin, hunan, guizhou, and shaanxi. In june of this year, china implemented a new consumption tax policy that affects imports of two fuels
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Mixed aromatics, which were blended into gasoline, and light cycle oil, which was blended into diesel At least seven chinese provinces and municipalities plan to shift consumption tax liability on certain products from manufacturers to retailers, oilchem said These components were previously exempt from china’s consumption tax.
Continued exemption of consumption tax on oil products regenerated from waste mineral oil
In september 2023, the mof and the sta issued the announcement [2023] no 69 to continue the exemption of consumption tax on the industrial oil produced with recycled waste mineral oil until 31 december 2027. Enterprises and individuals who manufacture, entrust other companies to process and import taxable consumer goods are taxpayers of consumption tax. China on may 14 announced that it will implement a consumption tax on mixed aromatics, light cycle oil and bitumen blend from june 12 in an effort to close a loophole in its tax system.
In june 2023, it expanded the finished oil product list, which includes lubricants and fuels, to cover a variety of refined mineral oils, or white oils Oils on the list are subjected to consumption taxes. The refined oil consumption tax refers to the consumption tax paid by consumers when they consume seven kinds of refined oils such as gasoline, diesel, naphtha, solvent oil, aviation kerosene, lubricating oil and fuel oil.
