ANNOUNCEMENT 01 Jan 2011
On 1 August 2011, the Ministry of Finance issued Notice No. 39 of 2011 to provide conditional relief for selected domestic LNG companies. The meausre is announced to be in force until 2020.
NUMBER OF INTERVENTIONS
PRC Ministry of Finance, August 1st, 2011. (财关税39号 关于对2011-2020年期间进口天然气及2010年底前“中亚气”项目进口天然气按比例返还进口环节增值税有关问题的通知)
When import prices are above domestic wholesale prices, 7 enumerated 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.