Di Yi Cai Jing·2025-06-11 02:57Core Viewpoint - The expansion of the consumption tax on refined oil products has led to significant tax liabilities for companies, highlighting the need for clarity on which products fall under the tax scope to mitigate tax risks [1][2]. Group 1: Tax Incidents - Two listed companies, Chengzhi Co., Ltd. and Ningbo Bohui Chemical Technology Co., Ltd., have faced substantial tax payments exceeding 100 million yuan due to the recent expansion of the consumption tax scope [1]. - Chengzhi's subsidiary was required to pay approximately 166 million yuan in consumption tax and related penalties, while Bohui reported a total of about 479 million yuan in tax payments [1][2]. Group 2: Regulatory Changes - In June 2023, the Ministry of Finance and the State Taxation Administration issued an announcement that effectively broadened the consumption tax scope for refined oil products, including mixed aromatics and heavy aromatics [2]. - The announcement aims to enhance tax management and promote the healthy development of the refined oil industry, with different tax rates applied to various oil products [2]. Group 3: Disputes and Clarifications - There are disputes between companies and tax authorities regarding whether certain products fall under the consumption tax scope, as seen in Bohui's case where the tax authority classified its heavy aromatic derivatives as taxable [3][4]. - The complexity arises from the diverse nature of chemical products and the potential for tax evasion through product name changes [4]. Group 4: Risk Mitigation Strategies - Companies are advised to assess their products against national and industry standards to determine tax obligations, as outlined by the State Taxation Administration [5]. - The administration has also introduced a temporary management method for testing taxable refined oil products to standardize the detection process and resolve disputes [6]. Group 5: Future Tax Reforms - The government plans to accelerate the reform of the consumption tax system, potentially moving the tax collection process to local levels, which could alleviate financial pressure on production enterprises [6][9]. - Experts suggest that moving the tax collection process could improve local government engagement in tax management, although it may also increase the administrative burden on tax authorities due to a larger number of taxpayers [9].