(ECNS) -- China plans to levy a higher environmental tax on pollution, according to a draft law unveiled by Minister of Finance Lou Jiwei in a meeting of the Standing Committee of National People's Congress on Monday.
The draft of the long-awaited law defines environmental taxpayers as business units that directly cause pollution rather than individuals. Taxable pollutants are grouped in four categories -- air, water, solid waste and noise.
Once the law takes effect, fees for exceeding pollutant discharge standards will be abolished. The minimum environmental tax is the same as the current pollutant discharge fee with a floating increase possible.
It also stipulates that mobile pollution producers such as motor vehicles, ships and aircraft are exempt from paying the new tax. Pollution released from agricultural production, except large-scale breeding, is also tax-free.
Preferential measures include a 50 percent cut on tax for discharging air and water pollutants that are 50 percent lower than the national or regional level.
Under the current system, environmental watchdogs are tasked with charging companies for pollution, but they have been ineffective. The tax will be a more powerful way to discourage companies from polluting and will fuel investment in green industries, experts said.
