China has decided to adjust import linkage consumption tax on oil products, according to a circular jointly issued by the Ministry of Finance and the State Administration of Taxation.

   According to the circular, the country will resume the consumption tax on imported solvent oil, naphtha, lubricant oil and fuel oil according to the legal tax rate, and exempt the consumption tax on imported naphtha from March 1, 2008 to December 31, 2010.

   The circular says that the move is aimed at further improving the country's consumption tax policy, and promoting unification and justice in taxation.

   Based on the circular, naphtha will be levied 0.2 yuan/liter (1kg = 1.385 liter) of imported linkage consumption tax; rubber, paint and extracting solvent, 0.2 yuan/liter (1kg = 1.282 liter); lubricant oil, 0.2 yuan/liter = 1.126 liter); 5-7# fuel oil, 0.1 yuan/liter (1kg = 1.015 liter); and other fuel oil (except wax oil), 0.1 yuan/liter.

   Earlier, the Ministry of Finance and State Administration of Taxation had jointly issued a circular, saying that the country would resume the legal tax rate of consumption tax of 0.2 yuan per liter on naphtha, solvent and lubricant oil, and 0.1 yuan per liter on fuel oil as of January 1, 2008.