China will levy a 5% resource tax on crude oil and natural gas sales and a 2% to 5% tax on coal in the Xinjiang region from 1 June, raising over 2 billion yuan ($292.8 million) for the region this year, according to local reports.
China has said it would begin resource tax reform in Xinjiang in a bid to return more revenue to the resource-rich area, which has also been the site of periodic unrest involving the Uighur ethnic group, Reuters quoted local media as reporting.
The new tax levels, based on resource prices, will replace existing levies that charge 8 to 30 yuan per tonne on crude oil output, 0.02 yuan to 0.15 yuan per cubic metre on gas and 0.3 yuan to 5 yuan per tonne on coal.
This policy, which the country has sought to revamp since 2006, will likely boost production costs for energy companies such as PetroChina and Sinopec as well as coal miners, copper producers and aluminium makers.