Petrochemical Revival Details Expected to be Announced Recently
From the China Petroleum and Chemical Industry Association (hereinafter referred to as "the petrochemical association") was informed that the details of the planning for the revitalization of the petrochemical industry was issued last week and will be announced in the near future. In response to the overall objectives of raising the industry value and industrial upgrading proposed by the revitalization plan, the detailed provisions put forward ten specific measures including the support of credit policies and the improvement of the refined oil price mechanism. According to Wang Xiaofeng, deputy director of the Industrial Development Department of the Petrochemical Association, which has been involved in discussions on the petrochemical revitalization planning program, last week, the National Development and Reform Commission has organized experts to review a total of more than 1,100 projects including the petrochemical industry's eight major revitalization plans, including 100 petrochemical projects. Above, the audit passed eighty-nine. For these audited projects, the government will give 6% discounted preferential policies to support it. Wang Xiaofeng said that since the NDRC has provided a total amount of restrictions for projects in various places, it may be possible to adjust these projects that have already been reviewed. Prior to this, experts participating in discussions on the revitalization of the petrochemical industry disclosed that taking into account the oil refining losses and operational difficulties of the two major oil companies last year, “collecting high special income proceeds will only increase the burden on the company,†and therefore proposed US$60/ in the draft plan. Barrels are relatively reasonable thresholds. Due to the high price of crude oil, the performance of the two major oil companies last year was the first time since 2001, but the profits tax has grown significantly. Last year, CNPC paid a windfall tax of 40.629 billion yuan more than the previous year; Sinopec paid a profit tax of 32.823 billion yuan last year, an increase of 193%. On the 20th, Wang Xiaofeng told reporters that the problem of raising the tax exemption threshold had not been approved by the government, and the exorbitant tax threshold still maintained its original level, that is, a special income tax was collected from US$40/bbl. “Relevant departments will give some preferential policies to oil companies. For example, the petrochemical revitalization plan clearly provides credit support for the development of overseas resources of oil companies,†said Wang Xiaofeng. The relevant person of the National Development and Reform Commission stated that the windfall tax belongs to the tax policy. Even if it needs to be changed, it needs to go through the procedures of the National People's Congress. Therefore, it is impossible to mention the content of the windfall tax in the revitalization plan.
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