Chinese lawmakers adopted a new law to tax polluters, particularly heavy industry. The Environment Tax Law was approved at the end of the National People’s Congress (NPC) Standing Committee meeting.
The law, to enter into force on Jan 1, 2018, will be key to fighting pollution.
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.
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.
For instance, polluters will pay 1.2 yuan for emission of 0.95 kilograms of sulfur dioxide and 1.4 yuan for one kilogram of chemical oxygen demand (COD). Carbon dioxide (CO2) is not included in the levying list.
Provincial-level governments can raise the rates for air and water pollution by up to ten times after approval by the people’s congresses. Lower rates may also be applicable if emission is less than national standards.
The law only targets enterprises and public institutions that discharge listed pollutants directly into the environment.
Punishment for evasion or fraud are not specified, but offenders will be held liable in line with the law on administration of taxation and the environmental law.
