China, the world's second largest energy consumer, plans to impose a new tax on the extraction of coal, oil and gas in the country's western region. The move is expected to boost tax revenues for the region's local economy.

The country will change the resources tax in the region to a price-based rather than volume-based levy, the government said on July 6.

China has imposed a 5-percent price-based resources tax on crude oil and natural gas in Xinjiang Uygur Autonomous Region since June 1.