+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
April 10 --China will speed up the development of environmental tax legislation that could penalize heavy polluters to help the central government pay for programs to address air, soil and water pollution, said a report from the State Council, China's top decision-making body.
Authorities from the State Administration of Taxation (SAT), the Ministry of Finance and the Ministry of Environmental Protection (MEP) have submitted proposals on environmental tax legislation to the State Council's Legislative Affairs Office.
The State Council and Standing Committee of the National People's Congress (NPC) will review and possibly modify the proposals before any release for public comment, the April 10 report stated.
The SAT is conducting research along with the Beijing municipal tax, environmental protection, finance and development and reform bureaus in the Haidian district of the capital to possibly launch pilot environmental taxes.
Jin Dongsheng, vice director of a tax policy research institute under the SAT, said environmental tax policies should include “polluter pays” principles, which the central government outlined as a priority during high-level meetings in 2013.
Sectors such as steel, cement, glass, coal, chemical and aluminum will likely be the first to face environmental taxes, an April 3 report from China Environmental News, a news agency under the MEP, stated. The report quoted officials saying it could take until August for the NPC Standing Committee to begin reviewing the draft legislation.
In addition to higher taxes for heavy polluters, authorities are considering cutting taxes for companies engaged in environmental protection industries. Those companies could be exempted from paying a value-added tax and could see potential cuts in corporate income taxes, said an April 2 notice from the SAT.
On April 3, the MEP and National Development and Reform Commission (NDRC) outlined policies to subsidize coal-fired power plants that install systems to remove sulfur dioxide, nitrogen oxides and dust emissions.
In a document, the groups said the subsidized coal-fired plants would install systems to automatically gather real-time information on emissions and dust.
Companies that fail to implement monitoring systems could have subsidies removed and face penalties up to five times the amount of their subsidy, according to the statement.
To contact the reporter on this story: Michael Standaert in Shenzhen, China, at firstname.lastname@example.org
To contact the editor responsible for this story: Greg Henderson at email@example.com
The State Council report on accelerating environmental tax legislation is available, in Chinese, at http://bit.ly/Q7P4iN.
A recent SAT statement on environmental tax reforms and possible exemptions for certain companies is available, in Chinese, at http://bit.ly/1n68z6O.
The NDRC and MEP joint statement on subsidy policies for coal-fired power plants to improve emissions control technologies is available, in Chinese, at http://bit.ly/1gNx2YY.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).