Heavier penalties for environmental polluters

BEIJING: A draft of China’s first environmental protection tax law, submitted to the top legislative body for initial discussion, may impose heavier penalties on polluters than ever before.

The Standing Committee of the National People’s Congress read the draft during its bimonthly meeting, from Monday to Saturday.

The draft designates four taxable types of pollution – airborne and water pollutants, solid waste and noise.

Companies and individuals who directly discharge these would be subject to the tax, Finance Minister Lou Jiwei told the top legislators on Monday.

The draft adopted the current standards for pollutant discharge fees as the lower range, and provincial level governments would have the authority to raise tax fees based on the environmental situation in their jurisdictions, Lou said.

The draft also stipulates incentives to reduce emissions, saying the taxpayers could receive a 50% reduction if they lowered their airborne and water pollutant emissions by half of the national or provincial standards.

Municipal sewage and household waste treatment plants would be exempted from the tax, as would mobile pollution sources like vehicles, vessels and airplanes.

Agricultural pollutants would also be excluded, though large-scale breeding farms would be taxed.

Shi Zhengwen, a professor of fiscal and tax law at China University of Political Science and Law, said the proposed tax comes at a good time, considering the severe pollution in recent years and the ongoing economic reform.

“It’s not an extra burden for companies, but a more standardised tax with stronger force, and easier for taxpayers to follow,” said Shi, adding it would not greatly expand the existing fees. — China Daily / Asia News Network