环境保护部环境规划院
Policy Design of Environmental Tax in China
Ge Chazhong
Chinese Academy for Environmental Planning
Nov 5, 2010 Bangkok
环境保护部环境规划院
Outline
• General Thinking on Environmental Tax• Overall progress of environmental tax in
China• Framework of Environmental Tax Policy• Design of Environmental Tax Options• Relationship between Environmental Tax and
Pollution Levy• Implementation Strategy
环境保护部环境规划院
General Thinking on Environmental Tax
Broad sense(3E)Establishing environmental tax;Establishing fiscal and preferential policies;Eliminating subsidies and environmental
charge policies which are harmful for environmental protection.
3
环境保护部环境规划院
General Thinking on Environmental Tax
Narrow sensecollect or cut taxes from whom engages in
developing, protecting or utilizing environmental resources.
4
环境保护部环境规划院
General Thinking on Environmental Tax
Plays the role of:Raise fiscal revenue for governments; Be used as special-purpose fund for
environmental protection; Change the polluter’s behaviors.
5
环境保护部环境规划院
The Progress of Environmental Tax in China
• First, starting to learn international experience
• Then, conducting studies on environmental taxes
• Last, policy design– “the Environmental Tax Policy and Its
Implementation Strategy ”
6
环境保护部环境规划院
The Progress of Environmental Tax in China
A long time workRelationship with other tax categories should
be cleared up;Detailed investigation should be carried out;special training should be developed for tax
authority staff.
环境保护部环境规划院
Framework of Environmental Tax Policy
Independent environmental tax plan; Integrated environmental tax plan;Environmental tax expenditure plan.
8
环境保护部环境规划院
Framework of Environmental Tax Policy in China
9
环境保护部环境规划院
Design of Environmental Tax Options
• Independent environmental tax plan
10
环境保护部环境规划院
Independent Environmental Tax Plan--General Environmental Tax
• Based on the income with goal of collecting money for environmental protection;
• levy taxes on beneficiaries according to beneficiaries pay principle.
11
环境保护部环境规划院
Independent Environmental Tax Plan--General Environmental Tax
Taxpayer All impersonal entities or individuals who pay value added tax, consumption tax and sales tax are taxpayers
Tax base based on the quantity of being paid for three taxes by taxpayer.
Tax rate be 1%~4% of that of three taxes.
Regulation of tax concession
Tax concession is not allowed in environmental tax.
12
环境保护部环境规划院
Independent Environmental Tax Plan--Direct Pollution Tax
• Based on the quantity of pollutants’ discharge;
• Accordant with the theoretical principle of environmental tax.
13
环境保护部环境规划院
Independent Environmental Tax Plan--Direct Pollution Tax--Sulfur Dioxide
TaxObject of taxation
The behavior of sulfur dioxide emission.
Taxpayer polluters who discharge sulfur dioxide into atmosphere, including industrial enterprises, institutions, business companies, service companies and other units.
Tax base based on the real emission quantity of sulfur dioxide.
Tax rate The tax rate of sulfur dioxide of coal is listed in table 1(with reference to study on how to make environmental tax policy in Beijing by CRAES)
Collection Local taxation departments 14
环境保护部环境规划院
Independent Environmental Tax Plan--Direct Pollution Tax-- Nitrogen
Oxides TaxTaxpayer end users of coal-fired boiler and owners
of motor vehicles.
Tax base based on the real emission quantity of nitrogen oxides.
Tax rate 1200 RMB / ton according to the sulfur dioxide tax rate and the charging standards for nitrogen oxides emissions established by CRAES in 1997.
Collection Local taxation departments15
环境保护部环境规划院
Independent Environmental Tax Plan--Direct Pollution Tax-- Environmental
Tax of Water Resourcecan be determined according to the scarcity
of water resources and the cost for water pollution control.
16
环境保护部环境规划院
Independent Environmental Tax Plan--Direct Pollution Tax-- Environmental
Tax of Water ResourceObject of taxation
Water used as raw material or for living purpose.
Taxpayer enterprises, institution and individuals who use water resources
Tax base the quantity of water consumed, or the real quantity of water supply
Tax rate 20%~30% of the water rate temporarily, which will changed to be differential tax rate according to the scarcity of water resources and water pollution conditions.
Collection State taxation departments17
环境保护部环境规划院
Independent Environmental Tax Plan--Direct Pollution Tax-- Polluting
Products Tax
• Stimulate consumers to reduce the quantity of consumption of products with potential pollution;
• Encourage consumers to select products with no pollution or less pollution.
18
环境保护部环境规划院
Independent Environmental Tax Plan--Direct Pollution Tax-- Polluting
Products TaxObject of taxation
All kinds of products or consumer goods which can cause environmental pollution, including chemical fertilizer, pesticide, phosphoric detergent, disposable woody tableware, battery with mercury and chrome etc.
Taxpayer Consumers or users of the above-mentioned products
Tax base The quantity of consumption and value of pollution products
Tax rate implement differential rate by 1%~3%.
Collection State taxation departments 19
环境保护部环境规划院
Design of Environmental Tax Options
Integrated Environmental Tax Plan which is functioning by reform and improvement of current tax categories, cooperate with environmental charge system as well.
20
环境保护部环境规划院
Integrated Environmental Tax-Consumption Tax
To Add new tax items: products with heavy pollution and large resource consumption are added, such as phosphate detergent, batteries containing mercury and cadmium, disposable tableware and plastic bags etc.
To Implement differential tax rate for tax items of carbon and clean energy.
21
环境保护部环境规划院
Integrated Environmental Tax-Consumption Tax
The
adjust
ment of
tax rate
To increase consumption tax rate of gasoline and diesel oil, meanwhile considering the environmental cost.For cars with the same exhaust volume, differential treatments should be carried out according to whether if purifier to tail gas is installed. The tax rate of clean vehicles is at the low differential tax rate or exempted.
22
环境保护部环境规划院
Integrated Environmental Tax- Resource Tax
to adjust grading income and to promote rational exploitation and utilization of natural resources;
has little effect on resources saving and protecting the eco-environment.
23
环境保护部环境规划院
Integrated Environmental Tax- Resource Tax
New tax
items
Tax item of freshwater resources includes the development and utilization of ground water and surface water. Tax item of forest resources.Tax item of grassland resources is added to levy tax on grassland development and utilization.
The adjustment of tax rate
Government should adjust tax rates of natural resources according to the scarcity of those resources and costs of ecological compensation.
24
环境保护部环境规划院
Integrated Environmental Tax-Enterprises Income Tax
Some preferential tax policies should be stated and given;
The scope of preferential policies should be limited;
Environmental protection administrations should play the leading role in identifying the qualification of applying those preferential policies.
25
环境保护部环境规划院
Integrated Environmental Tax-Other Relevant Taxes
City maintenan
ce constructi
on tax
New tax item
City maintenance construction tax will be levied upon in countrysides.
The adjustmen
t of tax rate
Increase tax rate for environmental protection need only.
Farmland use tax
New tax item
Be levied upon wetland use. Un-agriculture land in countryside is also listed under the scope of farmland use tax.
The adjustmen
t of tax rate
Increase tax rate of farmland use tax to a larger extent; the tax rate of wetland use tax is high and the tax rate of un-agriculture land is low.
Vehicle and vessel usage tax
The adjustmen
t of tax rate
Increase tax rate; and to determine different tax rates according to the quantity of exhaust volume.
26
环境保护部环境规划院
Integrated Environmental Tax-Environmental Tax Expenditure Policy
The government can regulate some preferential treatments in tax system;
Corresponding environmental tax expenditure policies should be established or supplemented on time;
Preferential means should be enriched.
27
环境保护部环境规划院
Integrated Environmental Tax-Environmental Tax Expenditure Policy
Improving measures:To clarify the policy coverage to strengthen its
pertinence;To adjust means and forms of preferential tax
policy;To determine the preferential degree of
environmental tax expenditure policy;To establish comprehensive preferential policies.
28
环境保护部环境规划院
Environmental Tax and Charge • Both have the same function mechanism;• Some problems occurred in the process of
implementation of environmental charge;• The combined function will provide stronger
stimulation;• The environmental charge and environmental tax
will coexist for a long time in China;• Several important items in environmental charge
could be transformed into tax.
29
环境保护部环境规划院
Implementation Strategy
STEP-STEP APPROACH: Easy first hard later, old first new later, integrated first independent later
30
环境保护部环境规划院
Implementation Strategy
To eliminate subsidies and preferential tax policies harmful to environmental protection;
To give a comprehensive consideration on environmental tax and environmental charge;
To carry out integrated environmental tax plan;To introduce independent environmental tax.
环境保护部环境规划院
Implementation Strategy
Piloting Program AheadPolluting products tax;Coal consumption tax;Taking water resource into resource tax.
32
环境保护部环境规划院
Implementation Strategy
Other work to do:To resolve technical issues;To specify the management structure;To arouse the public awareness of
environmental tax;To strengthen the fundamental work of
environmental tax;To carry out further study on environmental tax.
33
环境保护部环境规划院
Thank you!http://www.caep.org.cn
34
Top Related