ANNOUNCEMENT 21 Apr 2014

On 21 April 2014, the Ministry of Finance issued Notice No. 8 to extend a similar notice published in 2011 (Notice No. 39 of that year) to provide conditional relief for selected domestic LNG companies. The meausre is announced to be in force until 2020.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 01 Jan 2011 | Removal date: 29 Dec 2020
Still in force

Import tariff

When import prices are above domestic wholesale prices, 11 enumerated Chinese importers will benefit from a VAT reduction to compensate for the difference.

AFFECTED SECTORS

 
Inception date: 01 Jan 2011 | Removal date: 29 Dec 2020
Still in force

Tax or social insurance relief

According to the Notice, as long as the import price is higher than the local wholesale market price between 2011 and 2020, the imported liquefied natural gas for Central Asian Pipeline, Shanghai, Jiangsu, Guangdong, and Fujian projects can benefit from import VAT refund. With the new notice, also selected companies in Hainan may apply for the benefit.