China's rapidly detoriorating environment has proved to be a serious concern not just for environmental groups but the government as well. Last Wednesday, June 10, the State Council released a draft law on environmental taxes open for public debate.
The draft law proposes business taxes for environmental hazards, mainly solid waste, noise and pollutants.
The proposed environmental taxes law was drawn up in collaboration by the Ministry of Environmental Protection, Ministry of Finance, and State Administration of Taxation. It counts as one of its goals the establishment of an industrial system in China that is environmentally sound, efficient and energy-saving.
Stipulations in the proposed law include a rate on various industrial noises according to decibel level, which ranges from 350 yuan to 11,200 yuan; 1.4 yuan for stipulated quantity of water pollutants; 1.2 yuan for a certain quantity of air pollutants; and 5 to 30 yuan per ton for different kinds of solid waste.
Special considerations were also in the draft law, such as the halving of taxes if emissions are below national standard, and the increase of rates should the emissions be higher or in excess of the stipulated amount.
Provincial governments, according to the draft law, are given power to raise rates in consideration of different local environmental conditions.
The government believes that environmental taxes are key to curb the worsening problem of environmental pollution in the country. Chen Jining, the country's Environment Minister, said in a statement on June 9 that "the Chinese environment is reaching or has reached its limit."
For Chen, the Chinese environment is in bad shape, what with serious ecological problems and high pollutant emissions. For China's Environment Minister, it's about time forceful measures were implemented by the government to help better the situation.
In the environmental taxes draft law, pollutants from agriculture are excluded, except emissions that come from large-scale animal husbandry. Urban sewage, treatment plants, motor vehicles, locomotives, non-road mobile machinery, aircraft, ships, and other mobile pollution sources are also excluded from taxation so long as they meet the national standards.
Violations are to be reported to the Ministry of Environmental Protection.