China has started getting new taxes in terms of environment protection applicable form January 1. The tax aims to protect the environment and helps in reducing the pollutants in it. The institutions and companies that are discharging pollutant directly into the environment will pay taxes for creating noise, aid and water pollution and generating solid waste. The companies that will discharge more will have to pay more tax.
The tax rates are higher for pollutant that is more perilous. A debate of appropriate companies has been prepared by tax authorities. The introduction of the tax ended the ‘pollutant discharge fee’, which was being collected for nearly four decades. The new tax will benefit companies committed to cutting emissions and saving energy, a Chinese news agency quoted Liu Jianmin, director of the local taxation bureau at Jinjiang city in Fujian, as saying.
After this initiative it is believed that the local governments will keep the tax revenue and will have the right to set tax rates. Environmentally fragile regions, such as Beijing, Hebei and Tianjin, have adopted higher rates. Also said is that the authorities will monitor the emissions of the companies every quarter and those whose emissions are down may apply for tax redemption.