China Falters on Fuel Tax

20 September 2005

Xinhua. China is unlikely to introduce its tax on fuel, first proposed in 1994, this year as officials from various government departments failed to reach a consensus on the move last week.

Following a meeting of 16 government ministries summoned by the State Development and Reform Commission (SDRC), an SDRC official said it seems the proposed fuel oil tax program will not be introduced this year because too many difficult problems remain unsolved.

In a separate report published on Tuesday, the Beijing-based Economic Information Daily said conflicts of interests among various government departments, and between the central and local governments were the fundamental reason behind the failure by the departments to reach an agreement.