Li says nation to impose sales tax on coal

China is planning to impose a tax on coal that will take effect on Dec 1, Premier Li Keqiang said on Wednesday during an executive meeting of the State Council.

The new levy will be a sales tax on coal and will replace the current tax based on output volume.

"China's resource tax reform plan for the coal industry is a major step in the reform of the fiscal and taxation systems," the premier said. "Currently, the resource tax on oil and gas has been conducted thoroughly. Along with the new resource tax on coal, a dual pricing system on resources will be established."