ANNOUNCEMENT 04 Mar 2016
March 4th, 2016 - the Chinese State Administration of Taxation released Notice No16/2016, which reduced the fixed price of imported natural gas, both liquefied and pipeline. The prices will be controlled through VAT adjustments.
NUMBER OF INTERVENTIONS
PRC State Administration of Taxation, March 4th, 2016. (关于调整进口天然气税收优惠政策有关问题的通知)
PRC State Administration of Taxation, August 1st, 2011 (财关税39号)
On the 4th of March 2016, the Chinese State Administration of Taxation reduced the domestic sales price for imported natural gas. To incentivise gas imports, the Chinese government rebates the VAT on imported natural gas when the import price exceeds the desired domestic price.
By reducing the price, imports are more incentivised, hence the green classification of this intervention.
Through its decree, the Chinese government reduced the sales price of natural gas as follows:
From January 2016:
The change is effective retroactively from 1 January 2016. Excess VAT paid on prior imports will be credited accordingly.
In addition to the above, the Chinese natural gas rebate policy simultaneously consitutes a discriminatory treatment of unknown users of the natural gas imported through the scheme, as imported LNG benefitted from the rebate.