China will levy environmental taxes in 2018

China will introduce environmental protection tax since 2018.


On December 25, 2016 the Twelfth Meeting of the Standing Committee of the 12th National People’s Congress passed the Environmental Protection Tax Law. As China’s first single-line tax law to promote the construction of ecological civilization, “Environmental Protection Tax Law” will be implemented on January 1, 2018.

According to the environmental protection tax law, enterprises and institutions and other production and management personnel who discharge taxable pollutants directly to the environment are taxpayers. The object of taxation refers to the pollutants, water pollutants, solid wastes and noise specified in the “Environmental Protection Tax Tax”, “Taxable Pollutants and Equivalent Values” as attached to the Environmental Protection Tax Law.

Taxable basis, the taxable pollutant emissions as a tax basis, including air pollutants, water pollutants in accordance with the amount of pollution equivalent to determine the amount of pollution; solid waste in accordance with solid waste emissions to determine the noise in accordance with the provisions of the state Standard decibel number is determined.

Specific to the tax standard, the current sewage charges will be the standard as the lower limit of the amount of environmental protection tax, the amount of air pollutants for the amount of each pollutant equivalent of 1.2 yuan -12 yuan; water pollutant tax rate of each pollution equivalent of 1.4 yuan -14 yuan ; Solid waste by different types, the tax amount of 5 yuan per ton yuan -1000 yuan; noise by exceeding the number of decibels, the amount of 350 yuan per month -11200 yuan.

In the tax collection and management, the environmental protection fee to the tax, the collection department from the environmental protection department to the tax authorities, environmental protection departments to determine the “enterprise declaration, tax collection, environmental monitoring, information sharing” tax collection and management model. At the same time, the environmental protection tax income as a local tax revenue into the general public budget.

It is reported that the introduction of environmental protection tax to take tax reform methods, tax targets and scope of the existing sewage charges and the scope of the object is basically the same, are directly to the environment emissions of atmospheric, water, solid and noise and other pollutants. In the future, according to the new situation and the new situation, the scope of the environmental protection tax can be adjusted.Environmental Protection Tax Law This name is in line with the direction of tax reform and can set aside room for future expansion of taxation and overall tax reform.

Wang Jianfan, director of the tax department of the Ministry of Finance, said that the environmental protection tax is a newly levied tax, involving a wide range of charges and taxation of the two systems to be converted, policy and management needs to do a lot of preparatory work, including Drafting the implementation of the provisions of the tax law, refine the specific policies and measures of collection and management, according to the procedures submitted to the State Council for approval. The number of items to be determined by the local authorities, including the determination of the specific applicable tax amount and the increase of the number of taxable pollutants in the same discharge port, shall be determined and approved by the provinces (autonomous regions and municipalities) according to legal procedures.

Author: Association of the China Rare Earth Industry
Published: Jan 03, 2017
Original Source: Association of the China Rare Earth Industry

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