ANNOUNCEMENT 26 Dec 2014
December 26th, 2014 - The Chinese government published an update to its policy which guarantees domestic importers a certain price on natural gas.
NUMBER OF INTERVENTIONS
PRC State Administration of Taxation, December 26th, 2014. (财关税〔2014〕67号)
On December 26th, 2014, the Chinese State Administration of Taxation raised the target 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 raising the target price, imports are less incentivised, hence the red classification of this intervention.
Through its decree, the Chinese government altered the sales price of natural gas as follows:
From October 2014 onwards:
The measure is effective retroactively for the relevant periods. 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.