By Kevin Baxter
China's Ministry of Finance and State Administration of Taxation is to lift a 10-year ban on paying value-added tax on all refined oil products exports, according to the official Xinhua News Agency.
Xinhua said the products would include gasoline, diesel and jet fuel, and the government would now rebate the full 17% VAT to refiners that export their products.
Xinhua added that the move was aimed at easing oversupply issues that have occurred since the country's independent refineries were given licenses to import their own crude oil.
According to the Paris-based International Energy Agency's latest report, China's refinery throughput in September was 10.66 million barrels a day, a year-on-year rise of 330,000 barrels a day.
Xinhua said China was oversupplied by 100 million tons a year of refined products, a figure that could worry other refiners in the region that are trying to defend their respective regional market share.
China is projected to have 25.25 million tons of refined product demand in November as the onset of winter curbs consumption.
China consumed 25.9 million tons of refined products in October, but the culmination of the Chinese harvest season would be a major factor in trimming diesel demand.
Write to Kevin Baxter at firstname.lastname@example.org
(END) Dow Jones Newswires
November 15, 2016 13:35 ET (18:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.