China scraps import tariff for coalbed gas equipment

BEIJING - China will exempt certain equipment and parts for coalbed gas exploration and development from import tariffs and value-added tax during the 2016-2020 period, an official statement said Thursday.

The move aims to support the country's coalbed gas development and gas management in coal mines, the Ministry of Finance (MOF) said in a statement.

In 2016-2020, the tax exemption will be given to China United Coalbed Methane Corp, the country's top coalbed gas developer, and its domestic and overseas partners, the statement said.

Other companies in the business should apply for the same tax preference before importing listed products to the MOF, which will consult the country's customs and taxation authorities before granting the exemption, the statement said.

In 2015, China extracted 18 billion cubic meters of coalbed gas, up 5.5 percent from 2014, and used 8.6 billion cubic meters, up 11.5 percent, according to the National Energy Administration.

This year, the government plans to increase coalbed gas extraction to 19 billion cubic meters and increase gas use to 9.2 billion cubic meters, partly to reduce gas explosion accidents in coal mines.