China’s parliament has passed a law on 25th Dec 2016 that will levy specific environmental protection taxes on industry for the first time from 2018, as part of a renewed focus on fending off the nation’s pollution woes.
China is currently the world’s second largest economy.
The tax rate will be 1.2 yuan (USD 0.17) per unit of atmospheric pollution, 1.4 yuan per unit of water pollution, 5 yuan per tonne of coal waste and 1,000 yuan per tonne of "hazardous waste.”
Industrial noise polluters will also be levied 350 yuan per month if they exceed limits by 1-3 decibels, 700 yuan for 4-6 decibels and 11,200 yuan per month for 16 decibels or more.
Law goes into effect on Jan 1, 2018.
Prior to this, China has not imposed any specific environmental taxes and the new levy will replace an earlier system of miscellaneous charges regarded as far too low too deter polluters.
New policy is not for increasing tax burden on enterprises.
Conflicts of interest have emerged as other departments worry about lost revenues once the previous system of emission discharge fees is abolished.PRC Legislature NPC
- Stands for: National People’s Congress
- Membership: 2987 (2013)
- Largest Parliamentary body in the world.
- Unicameral legislature
- Referred to as the LIanghui or Two Assemblies along with CPPCC.
- NPC is elected for 5 years.
- Annual sessions are held in spring (10-14 days)
- Highest organ of state power in China.
- Considered the Rubber Stamp of the Communist Party of China (BBC 2009).