New Environmental Tax in China
January 29, 2015 Taxation in China
BEIJING – Pollutant-heavy batteries and paints in China are set to become more expensive with the imposition of a new tax on such products.
In a recent statement the Ministry of Finance of China announced that from February 1st a new tax will be enacted on the production and import of environmentally-unfriendly batteries and paints.
The tax will be levied at a rate on 10 percent on all batteries, except for environmentally-friendly variants, such as lithium, nickel-hydrogen, mercury-free, and batteries intended for use solely with solar panels and other renewable energy generators.
The tax will also be levied on the production and import of lead storage batteries, however, the measure will not come into effect until January 1st 2016.
Paints and coatings will also fall under the 10 percent tax, however, products containing less than 420 grams per liter of volatile organic compounds will be exempt from the measure.
The new tax is intended to encourage producers and importers to switch their focus to batteries and coatings which are less harmful to the environment.
Some experts have suggested that the tax is another step in the government of China’s environmental push, noting that new tax measures have been enacted recently to encourage the production of environmentally-friendly cars, with even further tax incentives expected to be implemented on the production of batteries for electric vehicles.
Photo By: Heather Kennedy