China cuts VAT rate on coal based DME - 02 Jul, 2008
It is reported that China will cut the rate of value added tax on dimethyl ether a coal based alternative to oil, to help boost the development of alternative energy amid soaring world energy prices.
China’s ministry of finance and state administration of taxation jointly announced on Monday that the government will cut the VAT rate on DME by 4.0 percentage points, to 13% effective on Tuesday.
The experts said that the adjustment removes the gap between the VAT rate levied on DME and other fuels, including liquefied gas and natural gas. The move will help the development of the DME industry.
China is accelerating the use of DME powered buses. Shanghai, for example, planned to put 90 more such buses into operation this year, up from 10 last year. It expected to have 1,000 such vehicles running in the city by 2010.
