BEIJING, Jan 5 China has raised the
threshold for windfall tax on crude oil production to $55 a
barrel from the previous $40, effectively cutting tax payments
by the country's oil producers such as PetroChina
and CNOOC Ltd.
The new taxation, backdated to Nov. 1 last year, will be
calculated monthly and the levies will be paid to the government
on a quarterly basis, according to a statement that Sinopec Corp
, the country's second largest oil
producer, submitted to the Shanghai Securities Exchange.
The statement was published on the Shanghai Securities
Exchange's website (www.sse.com.cn).
Oil producers will continue to be subject to a five-tiered
progressive windfall tax rate, although the threshold for each
category is higher than those in the previous scheme.
The following table shows the new tax formula.
Crude oil prices Windfall tax rate