Partial fuel oil exempt or return to the country or reduce 1.6 billion

The Ministry of Finance and the State administration of taxation August 30 announced that the use of domestic fuel oil for the production of ethylene, aromatic hydrocarbons, such as raw materials to exempt consumption tax, import fuel oil return excise tax policy, the implementation of the year 2010.　　Analysts say the country could cut taxes by 1.62 billion yuan.　　The analysts said that China can enjoy tax concessions in this part of the consumption of fuel oil about 2 million tons, according to the 0.8 yuan per litre of consumption tax calculation, to obtain the above 1.62 billion yuan data. "First Financial daily" access to public information shows that the 0.8 yuan per litre of fuel oil consumption tax was introduced from January 1, 2009, at that time because of the operation of the oil pricing mechanism, in addition to petrol and diesel, naphtha, solvent oil and lubricants, Aviation kerosene and other consumption tax unit taxes all rose to 0.8 yuan to 1 yuan per liter.　　Fuel oil also climbed from 0.1 yuan per liter to 0.8 yuan per liter. Liu Chunjun, an analyst with trade information, said, "In the January 2009, the naphtha used as raw material for ethylene and aromatic hydrocarbons was exempted from consumption tax, but the fuel oil was not exempted." In fact, this policy also shows that the country is on the oil price tax reform to make a micro-adjustment, but also reduce the burden on enterprises. "This policy has little impact on Sinopec PetroChina itself. The two major central enterprises are basically using naphtha to produce aromatic hydrocarbons and ethylene, not using fuel oil. Moreover, due to the impact of the upstream and downstream industrial chain, the two companies generally also rarely purchase naphtha, but the processing of naphtha directly after the refining of chemical products.　　There is no question of excise tax.　　Domestic use of fuel oil production and processing of chemical products enterprises, mainly in China Chemical Group Corporation Shenyang Chemical (000698.SZ), CNOOC's individual companies. A senior executive of Shenyang Chemical Industry told the first Financial daily, the company each year according to the demand is different, to use about 300,000 tons to 400,000 tons of residue as raw material, and then to produce ethylene, propylene and other chemical products, the company turned over the residue consumption tax, the reference is fuel oil 0.8 yuan per litre of this price.　　After the abolition of the consumption tax, the company may have a better impact.　　A number of securities company researchers also revealed that in accordance with the 400,000-ton calculation, within a year, the enterprise will increase the profit of about 320 million yuan. But a researcher who declined to be named said there were some ambiguities in the new policy, such as whether the residue was a fuel oil. In addition, whether the policy will continue to be implemented next year, whether sales companies should set a special price to the chemical industry and other issues are not clear.