Tax rise for diesel, naphtha

The government has begun charging the full rate of consumption tax for fuel oil and naphtha, the finance ministry and taxation bureau said.

Rates under the new tax scheme are 0.10 yuan a liter for diesel and 0.20 yuan for naphtha, which is used as a petrochemical feedstock and blending component for gasoline.

The government began levying consumption tax on fuel oil and naphtha at those levels in April 2006, but has allowed a 70 percent cut for both products since then, saying it would charge the full rates at the "appropriate time".