A draft of China's new environmental tax law will put emphasis on the adjustment of tax rates. Image: chinalawtranslate
A draft of China's new environmental tax law will put emphasis on the adjustment of tax rates in order to protect the environment, preserve energy and promote construction of ecological civilization.
Many experts agree that the environmental tax law is a major step forward for China, but they also stress that more efforts are needed to ensure the implementation of the law. Meanwhile, one environmental law is not capable of addressing all environmental issues.
Its initial draft, formulated by authorities in finance, taxation and environmental protection, was first released on June 10, 2015 for soliciting public opinion.
It has been noted that the environmental taxation system is taking reference from the current pollution discharge fees system with a lower limit. Tax payers in heavy-pollution industries including thermal power, steel, cement, electrolytic aluminum, textile and tanning will be assigned higher rates.
However, the draft sets no upper limit for tax rates in consideration of developmental differences between each region. Provincial governments can raise the rate based on a given region's environmental capacity, current emissions as well as economic, social and ecological development goals. The changes also need to be put on record to the State Council.
According to the news reported by Economic Information Daily on July 12, the final draft of China's new environmental tax law is expected to be submitted to the National People's Congress (NPC) for deliberation in August.
The law may be officially enacted before the end of this year.