China Outlines New Pollution Taxes

June 11, 2015 Taxation in China

BEIJING – China will soon tax noise pollution, air pollution, solid waste, and water pollution.

The State Council of China has recently released a draft of a new law detailing several new tax measures aimed at helping reduce the pollution levels in the country.

The new law will impose a strict set of levies on the emission of solid waste, air pollutants, polluted water, and noise pollution.

Under the newly issued regulations, water pollution will be levied at a rate of RMB 1.4 per 4 kilograms of waste, and solid waste will be charged at a rate of between RMB 5 and RMB 30 per tonne, while air pollution will be taxed at a rate of RMB 1.2 per unit, with the definition of a unit varying based on the nature of the gas.

Noise pollution will also be taxed at a rate of RMB 350 to 11 200, although the draft legislation did not specify the timeframe on which the tax will be calculated.

It was also noted that as an incentive to significantly decrease the output of pollution, any business which emit a level of pollution which is below half of the national average will see the rate of tax on pollutants cut in half.

Photo By: Kevin Dooley