What is the impact of the inclusion of industrial white lubricating oil in excise tax on refined oil on the grease industry?
The reason why base oil can issue these invoices is that, in essence, base oil products are covered in the categories of mineral oil, and the physical and chemical indicators of these products are very similar, and the invoice name is also divided according to whether the consumption tax is included.
China's consumption tax on refined oil products is only levied in the initial stages of production, commissioned processing and import, and the collection process is single. As a result, refined oil products produced from different channels are sold at different prices when entering the market, so the starting point of competition is different. Under the consumption tax standard, whether to pay consumption tax will have a great impact on the upstream and downstream enterprises of base oil and the lubricating oil industry. In addition, because consumption tax belongs to tax in price, assume duty by the seller. The raw material for the production of refined oil is crude oil or fuel oil. Crude oil needs to pay resource tax, while fuel oil that needs to pay consumption tax can be deducted from the consumption tax paid when producing taxable products, namely refined oil. Therefore, it can be speculated that each purchase of lubricating base oil and high temperature grease base oil should bear the cost of consumption tax on refined oil.
Accordingly, it can be speculated that in the future, no matter how the trend of oil prices, lubricating oil, grease will usher in a wave of rising tide again.