Study On Effect Of Fuel Tax Reform On Investment And Financing Of China's Highway Construction

On December 18,2008, the State Council issued "The notice on the implementation of the refined oil price and tax reform". The decision from January 1,2009 should come into force, marking the official launch of road tax and fee reform. Transport investment as an important pillar of the national economy, after fuel tax reformed, would be bound to be some adjustments. Highway construction funds from extra budgetary sources were brought into the scope of the financial management, and ran strictly in accordance with the "expenditure", which will lead to problems such as a single structure of highway construction funds and the reduction of cash flow. At the same time, in response to the global financial crisis, road infrastructure is one important aspect of the State Council's 10 measures to expand domestic demand, which makes the huge demand for highway construction funds far exceed existing sources of financing capacity. The contradiction between demand and supply of road construction funds become increasingly prominent.This article will compare the situation of fuel tax collected between domestic and international, and estimate the amount of the fuel tax for road construction. Through the study of funding source, investment and financing structures of the highway construction in developed and developing countries abroad, we would summarize the experience of the investment and financing of highway construction; sum up the source of funding and the structure of China's highway construction, analyze the mode and status of the highway construction investment and financing, and elaborate on the features of the highway construction investment and financing; analyze the impact of the fuel tax reform in the highway construction investment and financing, compare the share of highway construction investment, status and role of the fuel tax between United States, Japan and China; while dividing the highway to the toll road and non-toll road, analyze the major influence of the highway construction investment and financing after fuel tax reformed, and finally propose solutions.