China's extension of zero tariffs on coal imports until the end of this year is conducive to stabilize domestic energy supply and help lower costs for companies that rely on the use of imported coals, said one official with the Ministry of Finance.
Uncertainties and unpredictable factors still remain in the energy market, said Zhu Zhongming, vice-minister of finance, at a news conference on March 31.
Noting that coal prices are still high, Zhu said the continuing of zero tariffs on coal imports would help cut costs for enterprises that rely on coal imports.
In addition, as coal takes the largest proportion of China's energy mix and imported coal takes certain share in domestic coal consumption, keeping tariffs on imported coal at zero will help scale up China's coal imports, Zhu pointed out.
This will also boost market competition of coal supply in the global market and diversify the sources of imported coal, he said.
The continuation of zero coal import tariff was announced after the State Council's executive meeting on March 24. China cut tariffs on coal to zero from May 1, 2022 till the end of March this year, in a move to boost imports amid high prices in the international market.
(Writing by Rebecca Liu Editing by Harry Huo)
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