OTCPK:LLEN - Post by User
Comment by
coldheaton Sep 08, 2012 3:49pm
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Post# 20338095
RE: Guizhou tight coal supply confirmation
RE: Guizhou tight coal supply confirmation I was reading though the message boards today and saw this....
I must say that you have your assumption exactly backwards. They are reducing the tax because their supply is adequate.
The tax is imposed to encourage producers to sell their coal locally and not to other provinces when supplies are tight. This ensures a adequate supply in the province. When the supplies are high, they reduce the tax, which is what they have done here.
It's well known fact that China is covered up with coal at the present time.