The Ministry of Finance has announced it will keep fuel consumption tax rates unchanged in 2009, quashing expectations of a rise in the consumption tax in lieu of the introduction of a new fuel tax.

The Ministry of Finance has announced it will keep fuel consumption tax rates unchanged in 2009.

The ministry published the decision on its website, saying the 2009 consumption tax would remain the same as before 0.28 yuan per liter for leaded gasoline, 0.2 yuan per liter for unleaded gasoline, naphtha, solvents and lubricants, and 0.1 yuan per liter for diesel, jet kerosene and fuel oil.

Officials have said they are considering changing the way the country prices refined oil products. Many analysts had expected the government to cut prices, but also to raise taxes on fuel at the same time.

(CCTV November 26, 2008)