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In order to quicken the development of XJ, the central government decided to implement the resources tax reform in XJ. This is regarded as a good way to enhance XJ's self-development capability. Xinjiang will take lead in China to start reform of resources tax with a shift to taxing crude oil and natural gas by price rather than volume.

The change of the resources tax levy can promote the local financial strength and is good for natural resources and environment protection.

WANG YUDAI, PROFESSOR ECONOMIC DEPT  XJ PARTY SCHOOL:

"Taking oil as example, the oil output last year was 25.18 mln tons. If the levy ratio of 5%, the tax will reach 6.295 bln yuan. This can increase 4 to 5 bln yuan of financial income."XJ has abundant mineral resources. Till 2008, the discovered mineral resources in XJ numbered 138, with 9 of them ranking 1st in reserve in whole China. However, due to the low exploitation rate and poor processing capability, XJ hasn't formed a complete mineral resources industrial chain.

WANG YUDAI, PROFESSOR ECONOMIC DEPT  XJ PARTY SCHOOL:

"After the levy mode changes, the production cost will increase. Then the enterprises must promote their technologies and management level to reduce cost. This can enhance the utilization rate of oil and natural gas."

Besides the adjustment of the tax rate and valuation mode, the taxation range will also be enlarged. This is also be the main part of the resources tax reform.