China will further improve fuel tax reform scheme and introduce fuel oil tax at an appropriate time in accordance with the general requirement of energy saving and reform of road traffic tax, according to an official of the Ministry of Finance.

     Zeng Xiao'an, deputy head of the MOF Economic Construction Department said Tuesday introduction of fuel oil tax first put forward in 1998 has aroused great concern in the public.

     Zeng said the launching of fuel oil tax requires some necessary conditions, such as stable oil price, and formation of a rational pricing mechanism of oil products.

     Coincidently, Vice-Minister of Finance Zhang Shaochun also released such information last month.

     The releasing of such information by officials of the Ministry of Finance at two different times may be a signal that the fuel oil tax will start in short time, said some experts.

     In 2001, the State Council decided to carry out the reform in two steps out of consideration for high oil price on international market at the time and stabilize domestic oil market. Firstly, starting from January 1, 2001, China replaced vehicle purchase surcharge with vehicle purchase tax. Secondly, it plans to introduce fuel oil tax at an appropriate time to replace highway maintenance fees and other such charges. 

     An industry analyst forecast that China would introduce the fuel oil tax after the Beijing Olympic Games.

     Zeng disclosed that China is also brewing launching consumption tax on products which cause serious pollution or consume resources heavily.