ANNOUNCED AS TEMPORARYNo
When import prices are above domestic wholesale prices, 7 specified Chinese importers will benefit from a VAT reduction to compensate for the difference.
Refunds would be given proportional to the difference between the final import price, and domestic purchase price of the gas, calculated by averaging data for each quarterly period.
The scheme sought to alleviate the huge losses that natural gas importers in the PRC were incurring up to this point in order to feed the increased demand for the gas and keep the industry healthy.
UPDATE: Investigations by the OECD revealed that PetroChina, one of the biggest firms in this sector in the PRC, received between USD 723m-1.16bn (CNY 5-8bn) annually over the 2011-2017 period through this policy.
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