Reforming the resource tax, of course, should be fully supported. Tolerating a kind of extensive and low-cost resource exploitation behavior is condoning a predatory and unsustainable development model. Regarding this, no one will raise any objections.
However, many people still have doubts about the resource tax pilot program that has already begun. It is not the attitude and path towards this kind of reform, but the pace and intensity of this action —
First of all, we can see that the adjusted resource tax rate is still relatively low. The resource tax, which was originally levied based on quantity, has been raised several times. However, due to the continuous sharp increase in oil prices, the tax rate calculated by price is still less than 1%. Although the adjusted pilot tax rate in Xinjiang has been raised to 5% this time, it is still far from the 12.5% in the UK, 16.5% in Russia and the domestic and foreign average of 14.6% in the US. Some people might say that reform requires a process and it’s impossible to achieve everything at once. However, we can see that while the resource tax was raised, the relevant departments also “seized the opportunity” to increase the price of natural gas, with the increase reaching 25%. The relevant department explained that this was an arrangement after balancing the interests of all parties, while financial commentator Ye Tan said that this was completely a “appeasement” policy.
