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2010.07.0804:33:00UTC+00China To Extend Resource Tax Regime

China is planning to extend its resource tax scheme to cover the entire nation in a bid to boost local economic development, reports said on Thursday citing a government official.

Du Ying, vice chairman of the National Development and Reform Commission, was quoted as saying the government will extend its tax scheme on oil, gas and coal extraction, although no timeline has yet been set to when the tax will come into effect.

The resource tax, first introduced last month in the Xinjiang province, levies 5% on crude oil and gas sales. Premier Wen Jiabao has also pledged to cut the corporate investment tax for the poorer Western regions of the country, to 15% from the current 25%, according to state media.

Du said the levy rate could vary from region-to-region. The government hopes to raise greater fiscal revenue which will then be invested to develop infrastructure in remote areas such as Inner Mongolia and Xinjiang.

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