Laws of the People's Republic of China

The State Council

Decision of the State Council on the Collection of Special Petroleum Incomes

Guo Fa [2006] No. 13

The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, all the ministries and commissions of the State Council, and the institutions directly under the State Council:

Petroleum is an important strategic resource in the national economic and social development. Since 2004, the profits of the crude oil exploitation industry in China have increased a lot as a result of the continuous and significant rise of the oil price in the international market, which has increased the costs of other industries and the society for using the oil, caused the unbalance of the distribution of benefits among various industries, and affected the smooth running of the economy. For the purpose of properly balancing the interests of different sides, promoting the reform of oil price forming mechanism, reinforcing the state adjustment and control, and promoting the national economy to develop in a continuous, sound and coordinative way, the State Council has decided to collect special incomes of petroleum on the excessive incomes obtained by petroleum exploitation enterprises from selling domestically produced crude oil as a result of the rise of oil price.

The special petroleum proceeds are non-tax incomes of the central treasury and shall be included into the budget management of the central treasury. The specific measures on the collection administration shall be formulated and promulgated for implementation by the Ministry of Finance.

The State Council

March 15, 2006