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China to Impose Higher Taxes on Heavy Polluters in 2018

| Dec 28, 2016 05:55 PM EST

China's real estate and construction sectors account for 8 percent the world's carbon emissions.

The battle to fight pollution would go beyond Beijing and other key cities where smog is rampant. China would impose higher taxes on heavy polluters beginning 2018.

The higher taxes would be collected from nitrogen oxygen, sulphur dioxide, mine tailings and ash from coal-fired power plants. The stricter environment protection laws would result in the closure of some companies responsible for contributing heavily to pollution, Fortune reported.

Rate of Pollution Taxes

South China Morning Post reported that a 12 yuan fine would be imposed on polluters for every 0.95 kilogram of nitrogen oxide or sulphur dioxide released. For miners, the penalty is 15 yuan for every ton of tailings since it has heavy metal and other deadly debris that cause severe soil and water contamination.

A 25-yuan tax would be collected from coal-fired power plants for every ton of ash emitted. However, the new law exempts vehicles – major source of air pollution in cities – from tax as well as nuclear power plants which produce radioactive waste. Also not to be taxes are sources of carbon dioxide, a vital greenhouse gas.

Turning Point in Battle vs. Pollution

Experts believe the new law could be a turning point in China’s battle against pollution. “This sends a clear message to the industry: you change, or you die,” Shi Lei, professor at the Tsinghua University in Beijing, said.

Although the penalties may not be very high, the legislation, nevertheless, made significant progress to address China’s air and water quality problems via taxation, Yuan Ying, Greenpeace East Asia’s assistant manager at its Beijing office, said.

With the stringent environmental protection law, it would be easier for the Chinese government to file criminal charges against polluters. Because of the heavy smog in key cities, the health of millions of Chinese are at risk.

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