Levying tax on fossil fuel producers and Countermeasures
1, a fuel tax in the background
A country's fiscal revenue can be divided into two parts: the tax revenue and government tax charges, according to World Bank statistics, the 20th century, 80 years
the proportion of national fiscal revenue, the average level of GDP, roughly as follows: 23% low-income countries, middle-income countries, 29% of the market economy in
industrialized countries 40%: people with the development of market economy, fiscal
revenue-GDP ratio is gradually improving. At present, China's fiscal revenue-GDP
ratio is not only much lower than the developed market economies, the average level, but lower than the average for developing countries. China's GDP in 1999 reached
8.319 trillion yuan, fiscal revenue trillion yuan mark for the first time, about 1.1377 trillion yuan, but only GDP, 13.67%. The reason is that the government exists in our country a huge tax charges. Along with the deepening of economic reform, the central
and local levels of government gradually delegating powers and benefits, local governments in a market economy evolving circumstances, the need to have a certain degree of economic regulation and control means to compensate for the market, thus increasing the local government's financial expenditure, resulting in fees on behalf of local governments to tax in order to charge the phenomenon of tax squeeze, resulting in huge loss of state budget revenues. 1990 to 1996, the government tax charges, the average of total GDP, accounting for 12.7%, to 28.41 percent and the average annual growth rate in 1992 for the first time "fees greater than the tax" situation. In addition to estimates of the fees and charges, the main is the large proportion of the "extra-
budgetary fees" and "outside the system charge."
The proportion of tax charged is too large, not only caused the loss of state revenues and weaken the central government macroeconomic regulation and control efforts, but also contributes to local and departmental charges parochialism. Fees increase, and
management and was not well, not only increase the burden on citizens, but also breed corruption. Some of our industry to make people pay overwhelmed these days, has reached the point must be solved.
Under the tax reform is currently being vigorously implemented fiscal policy, a variety of tax on the existing implementation of a comprehensive clean-up fee to a tax charge
gradually changed the nature of taxes, regulate charge management, eliminate unreasonable charges. October 31, 1999 the Ninth NPC Standing Committee 12th meeting, adopted the "Highway Law" amendment to road maintenance fee for the vehicle levy fuel tax reform paved the way for the reform of the State Planning Commission in January 2000 issued a eight year fee checks. 2000 2
12, Premier Zhu Rongji has issued dissolving the "administrative fees and fines for violations of two separate lines of revenue and expenditure management regulations Interim Provisions on administrative sanctions." All these developments demonstrate,
China's tax reform and standardize the work of the management fee is being intensively carried out.
Select the fuel tax as a breakthrough in the work of promoting tax reform in line with international practice on the passage of oil consumption. At present, some countries in order to increase revenue, protect the environment, the implementation of sustainable development strategies imposed on gasoline and diesel fuel tax accounts for 70% of its price, oil consumers pay the cost of crude oil costs have reached more than 6 times the . In our country in a variety of charges, charges for transport and vehicles more prominent. According to incomplete statistics, China's transportation and vehicle fees accounting for about 40% of the total fees and charges. If the levy a fuel tax on gasoline and diesel under our 2000 production and consumption forecasts, increase revenue 1300-150000000000 yuan. This is to promote economic development and start-
consumer auto market, with an active role.
2, a fuel tax on the impact of petrochemical enterprises
2.1 gasoline and diesel market demand fluctuations occur
In 1999, according to the relevant provisions of the amount of fuel duty levied 1596.2 yuan per tonne gasoline, diesel fuel levy 1117.2 yuan per ton. January 2000 According
to the latest news, the State Council has drawn up specific plans fuel tax levied under this program, imposed on gasoline and diesel fuel tax rate will reach 45%. This shows that fuel duty will lead to gasoline and diesel prices soaring, to the refinery in normal production, a seriously adverse impact.
According to the Trade of the demand function
QD = f (P, I, T, P1, E ... ...)
QD-commodity market demand
P 1 commodity prices;
I a consumer income;
T a consumer preference;
P1 a related products pricing;
E - People of the commodity prices of the future expected value.
The short term, such as the implementation of fuel tax levied, within the first two months, one might be to buy the oil stored in advance or re-adjust the annual oil
consumption plans, resulting in the market for gasoline and diesel demand for a substantial increase in oil sales over companies, gas stations and storage capacity of the transportation company such as storage of gasoline and diesel will reach maximum
capacity. However, the continuity of petrochemical enterprises are large-scale industry,
the actual processing capacity will not be in a short time has been greatly improved, so the supply will be no major changes in the Prior to this, willing to take will be placed in the largest production capacity of the state.
Fuel tax levied at the beginning of a period of time prior to, gasoline and diesel market supply and demand will increase, prices will rise, the market has started the most likely
method of collection is a specific day of announcement. But when I began levying fuel tax, after soaring more than 50% as prices in the short term the market may be "zero demand", when stocks started to decrease, the demand will rise over time. Unlike other
consumer goods, petroleum products within a year the total consumption is relatively stable. Therefore, in general, its price elasticity of demand for smaller, fuel tax, after shrinking oil demand will continue over how long time, more difficult to ascertain.
However, as long as more than about ten days time, they will have a strong negative petrochemical producers situation. Petrochemical production plant is the nature of continuous production, processing capacity, storage capacity normally does not exceed
a half months, the production capacity can not be reduced to 60% to 70% or less. Many companies belong to the refinery. The integration of large-scale joint venture
chemical industry, refinery product sales block library, will force the refinery to reduce
or stop production capacity, follow-up chemical process equipment, it will be affected
due to lack of raw materials production. Can be expected that the introduction of fuel duty for several days, there will be a part of the petrochemical enterprises stop
production, reducing the amount of production will be inevitable. Of a large-scale
installation work stoppage a start, not only result in material consumption, energy consumption increases, but also to bring equipment, security problems. Preliminary
estimates, a set of 3 million / t cut-off 10 days of refinery losses resulting from 500
Analysis of market demand for payment of duty after the step by step to reach equilibrium, we can see that, although the price rose, but the corresponding road
maintenance fee to waive the payment, the actual prices or costs incurred by consumers will vary, transportation and the taxi industry, the costs may rise, but private cars and other similar vehicles, there was a substantial cost burden will fall, thereby stimulating
the automotive consumer market. Private car is the biggest beneficiary of the implementation of fuel tax. Experts estimate that the imposition of fuel tax for private cars off the arrival of additional road maintenance and other fees charged, raising fares
may spend less than half "4].
Private cars and other similar vehicles, the cost of significantly decreased consumption, to make people adjust to the post-tax price of gasoline and diesel
understanding, even up 50%, people will think that, over the previous low price in order to guide people's consumption trends . The increase in automobile consumption, will further promote the demand for gasoline and diesel market expansion. In short, market acceptance of fuel tax, supply and demand, the average points will be adjusted, the total will rise. Reposted elsewhere in the paper for free download http://
2.2 the liquidity flow problems
The fuel tax is levied at the refinery began production chain, the strength of oil
refining enterprises in the payment of the factory. The initial intention is to open a factory in the oil money out tax invoices, while a single ticket. The tax department will send a commissioner stationed in the refinery, as long as oil factory, you have to
payment of taxes, paid the day's business the same day, regardless of whether the petrochemical enterprises and tax payment receipt. At present, the sale of oil in place payment normally takes about 7 days or so, sales of businesses and other customers in
arrears payment refinery is a very common phenomenon, and the huge amount of each business. If the arrears payments to the phenomenon does not occur in the flow of funds on the refinery would have little impact. But the reality is, at present, domestic
and international petroleum products market is still a situation of supply exceeding demand, production enterprises in order to smooth product factory, had to sell some businesses the convenience and buffer time. If funds are not withdrawn from
circulation in time, then the refinery is not only not receive the money, but also need to come up with a sum of tax advance. The current domestic ex-factory price of gasoline is
about 2860 yuan / t, diesel 2465 yuan / t, if the collection 1596 and 1117 yuan
respectively, the fuel tax, an annual processing volume of 3 million t of crude oil refining business, the year is expected to be turned over 2 billion fuel tax yuan. As the fuel tax required to pay the day of the sale of oil and oil products without payment in
place in time, companies will face a huge liquidity gap. Preliminary estimates, companies need long-term advances of about 50 million yuan of liquidity. In this way, companies had to borrow from banks. The fuel tax would not only financially to the
refinery has put pressure on enterprises, also petroleum products marketing company to bring pressure, they are bound to reduce the oil stocks, to ensure their own money flow. Thus, the pressure on stocks will be shifted refinery, allowing refineries to
increase inventory. Loans and inventories increased, petrochemical production enterprises liquidity ratio and quick ratio decreased rapidly to the enterprise liquidity tremendous pressure.
On the other hand, oil refining enterprises to bank loans in order to ensure the smooth
progress of product factory, increased financial costs. The one-year lending rate by
5.85% total, 5,000 million short-term loans to pay interest within one year of more than 300 million, an increase of the cost of oil refining companies.
2.3 The possible re-emergence of smuggling of refined oil tide
First half of 1998, domestic refined oil products and chemical fiber products, rampant smuggling. Particularly in Guangdong, Fujian and other coastal areas, smuggling of oil on the domestic market caused great impact. 1999 Xiamen Yuan Hua smuggling case, the amount of smuggled oil product sales once accounted for three into the domestic market. Petroleum and petrochemical production in the first half of 1998, once in serious losses. In the State Council has made cracking down on oil smuggling, to suspend imports of gasoline and diesel policies such as support, in June
Month were petroleum and petrochemical industry-wide losses, the gradual economic
recovery. As the smuggling of refined oil to avoid a 6% ~ 9% tariff and 17% of the
value-added tax, as well as 277.6 yuan per ton of gasoline and diesel 177.6 yuan-based
consumption tax, will be huge profits smuggling of oil products will no doubt give the domestic petrochemical Company products to a fatal blow. Despite the punishment of
Zhanjiang in China by the end of 1998 a large number of smuggling and other regions of the culprits, but in the high seas, Barge, and split up to "ant" type of smuggling is still repeated
Banned forever, and keep track of. And in February 1999 has also appeared in China's
largest oil smuggling an "Ocean Eagle" was smuggling these show that even in severe legal sanctions and anti-smuggling efforts to further strengthen the case of refined oil smuggling has not stopped. After the implementation of fuel tax, smuggling of refined oil will be a huge fuel tax evasion, smuggling, increase the profits into several times and will certainly stimulate the lawless elements to take the risk, if the tide of smuggling is
not stopped, the domestic refined oil market would be disastrous.
3.1 Petrochemical Group should strengthen the overall control, improving supply-
Established in 1998, Sinopec Corporation, realized the upstream and downstream,
domestic and foreign trade, and production and marketing integration, the initial streamline the internal relations of the group. 1999 has been assigned to the provincial oil company Oil and Petrochemical Corporation. Petrochemical production enterprises
and sales of businesses belong to the same group under the jurisdiction of refinery production for domestic sales of refined oil from the sale of the company all the provinces and autonomous regions unified profile to oil companies, Sinopec Group, the
jurisdiction of the refined oil wholesale market, accounted for 85 total % of self-
employed retail sales volume of about 50% of the market have greater control. Group-
wide Division should carefully analyze the market, with a reasonable adjustment to the
resources to sell production quotas to meet market demand. Should give play to the advantages of production and marketing integration, coordination, and a standardized order of refined oil business. Group Sales Department should be implemented as soon as possible for the domestic sales of refined oil a unified clearing operations to ensure that oil producers of oil allocated to the provinces and timely transfer of tax money and put in place. It is learned that, the state oil marketing companies will be given arrival
rate of 5% of the private loans, the funding pressure for the oil marketing companies will be relatively smaller.
3.2 The inventory of gasoline and diesel oil to run a business inventory, Bu Zheng fuel tax
State tax and other relevant fuel tax collection programs should be before the release
of the oil enterprises to find out the actual operating capacity and inventory, to stock the day before the collection of gasoline and diesel fuel tax Bu Zheng. This is a daunting task, there must be a sound regulatory measures. And Buzheng fuel tax provisions were to be released as soon as possible to avoid over-buying and storage markets gasoline
3.3 to crack down on smuggling efforts, and improve sales of oil terminals Information+Systems">Information Systems Management
Fuel tax is implemented, the work to combat smuggling of refined oil will be more difficult, the state should establish more severe penalties. Sinopec Group to further develop petrochemical industry, network marketing the advantages of dynamic control
of smuggling, particularly in land-based depot centralized oil filling stations of oil
smuggling, and timely reports to the relevant state departments. Only the sea-
smuggling and a ban on private land combined is it possible to produce results.
At present, the petroleum and petrochemical group in pairs of two, within their respective areas of society to absorb oil marketing unit, joint and acquisitions work, speed up the construction of refined oil product sales network speed, the retail market
share increased to 40%, respectively ~ 50%. State oil terminal sales should be made unified and standardized management approach to the community's sources of oil service stations clearly defined. Since September 1998 China has suspended imports of
petrol, diesel oil, domestic oil market is almost entirely by petroleum, petrochemical, control of the two groups, so the two can be implemented on various social stations group absorption and holding on the oil resources a unified configuration. The most
fundamental measure is licensed only to the oil and petrochemical group of franchised motor two fuel oil, thereby rectifying the sales outlets, and improve operational scale and the level of hardware facilities, shutting down equipment not reach the level of the
scale and gas stations, the implementation of the National The oil sales outlets computer network. Two pairs of stations group unified distribution, unified settlement, unified management by objectives, and networking with the tax authorities, so that the
fuel tax is levied from the production company eventually transferred to the gas station in "oil gun", this is also the international practice. As a result, also resolved the payment of duty on agricultural subsidies, how the problem of diesel, but also blocked
the smuggling of oil products sales in the combat against smuggling, will play a decisive role.
3.4 Petrochemical enterprises should adjust their production programs to increase high value-added products
Petrochemical production enterprises to ensure that the supply of gasoline and diesel market conditions, reasonable arrangements for the production program, crude oil processing units towards a prolific high value-added aviation kerosene, molecular sieve
materials and solvent oil; while in the second catalytic cracking unit should be processed consider the liquefied gas production program. These products are not to collect consumption tax, or levy a fuel tax can guarantee a certain extent, the production, but also bring huge profits to the enterprise.
3.5 positive development of alternative fuel for gasoline and diesel motor vehicle
For environmental and cost considerations, both domestic and foreign petrochemical enterprises in the study of environmental protection energy-efficient vehicle fuel.
Domestic past two years, Sinopec Group selected susceptible to the chemical structure of the monomer for biodegradable polymer material synthesis; second is the use of biological decomposition of poor monomer should try in the polymer chain,
accompanied by a degradation of the gathered complex; Third, we must strive to reduce the melting point of the product.
Light - a result of biodegradable polymer materials with a light, bio-degradation of
dual function, with a high degradation rate will not cause pollution of the soil plow
layer, the relative advantages of lower cost, so promising, is the degradation of polymer materials, an important development direction One of the degradable significant progress has been made, but the degradation time can be precisely controlled,
especially of sexual degradation and degradation products of a thorough environmental safety protection, remains to be further studied. Reposted elsewhere in the paper for free download http://