Carbon dioxide, one of the major contributors to global warming, is not included in the levying list.
Combatting recurring pollution enveloping its cities, China has passed a new law to levy environment tax on polluters, specially on heavy industries.
The Environment Tax Law was adopted by the legislature, the National People’s Congress (NPC)
Standing Committee which concluded its meeting on 25th
The law followed nearly week-long red alert due to heavy smog over Beijing and 23 other cities last week leading to imposition of odd-even number system to regulate vehicles and closure of schools.
The law, to enter into force on January 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 (about $2.5 billion) from some 280,000 businesses.Replacing China Environmental Fee System With Law
- For years, regulators have suggested replacing the fee system with a law.
- It will reduce government interference and improve tax payers’ environmental awareness.
- It is also forcing companies to upgrade technology and shift to cleaner production.
- Under the new law, companies will pay taxes ranging from 350 yuan ($60) to 11,200 yuan ($1870) per month for noise, according to their decibel level.
- A value 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 tonne of solid waste was also set.
- Under the new law provincial-level governments can raise the rates for air and water pollution by up to ten times after approval by the people’s congresses.
- The law only targets enterprises and public institutions that discharge listed pollutants directly into the environment.
- China is the world’s largest emitter of greenhouse gases.
- This is because of its heavy reliance on coal to provide electricity to its population of 1.37 billion.