Green Taxes Needed in China
August 16, 2012 Taxation in China
MANILA – The government of China has been advised to implement new “green” taxes in order to decrease pollution and promote sustainable growth in the country.
In a new report released on August 15th the Asian Development Bank (ADB) said that the China’s economic and taxation policies for environmental protection have improved in the last two years, but “… the overall situation continues to deteriorate as environmental pressures increase. The country’s environmental situation has not yet reached a turning point.” As a means of addressing the issue of environmental protection, the Bank has urged the government of China to introduce a “green taxes” and to offer economic incentives for environmental projects.
In order to improve the environmental situation the country, the ADB proposed that the government of China government should introduce new tax measures on resource extraction activities, and implement a tax on the emission of carbon dioxide and other pollutants. The ADB also suggested that the government should investigate and optimize the regulations and pricing for resources extracted in China.
As a further measure for environmental protection, the ADB suggested that China would benefit by introducing tax incentives for investment into the development of pollution control technology. The government was also urged to consider implementing economic incentives to encourage regional governments and private sector operators to offer a greater array of ecological services and environmentally friendly products to the public.
The Bank added that in order to efficiently introduce the new policies, China would need to clarify its current set of rules and regulations for environmental protection in order to cut out legal ambiguity and redundant policies.
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