China Plans To Control Pollution By Implementing Environmental Tax

By M. GraceDecember 26th, 2016

China has adopted a new law, The Environment Tax Law, to tax polluters especially those in heavy industry.

The tax law was reportedly approved at the end of the National People's Congress or NPC Standing Committee meeting on Sunday afternoon.

" law, to enter into force on Jan 1, 2018, will be key to fighting pollution," Wang Jianfan, director of the Ministry of Finance tax policy department said.

"China has collected a "pollutant discharge fee," since 1979. In 2015, it collected 17.3 billion yuan ($2.5 billion) from some 280,000 businesses," Wang added.

But, as cited in one report, local government exempt those companies who are big contributors to fiscal revenue, exploiting loopholes. It was reported that regulators have long suggested to replace the fee system with a law to implement.

"The new law will reduce interference from government," Wang told a press conference. "It will also improve tax payers' environmental awareness, forcing companies to upgrade technology and shift to cleaner production."

"Under the new law, companies will pay taxes ranging from 350 yuan to 11,200 yuan per month for noise, according to their decibel level. It also set rates of 1.2 yuan on stipulated quantities of air pollutants, 1.4 yuan on water pollutants and a range of five to 1,000 yuan for each ton of solid waste," one report noted.

Furthermore, reports claim that the law only target public institutions and enterprises which discharge listed pollutants directly to the environment. Punishment was not specified but the offenders will be liable on the law on administration of taxation and the environmental law to be implemented.

Wang also added that the Chinese lawmakers will still make preparations drafting a regulation for the law to be implemented. He further added that the revenue will go to local governments and still, the national government will spend on environment protection.

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