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Taxpayers could enjoy as much as 25 percent off their taxes if their emissions are 30 percent lower than national or local standards, according to a revised draft environment tax law submitted to the top legislature for second reading on Monday.
The draft law, submitted for first reading in August, sets a rate of 1.2 yuan on the amount of air pollutants, 1.4 yuan on water pollutants and from five to 1,000 yuan for each ton on different types of solid waste. For instance, polluters will be levied 1.2 yuan for emissions of 0.95 kilogram of sulfur dioxide and 1.4 yuan for contaminating water with 100 grams of petroleum, the Xinhua News Agency reported.
In the first reading, the rules stated that the rates may be halved if taxpayers' emissions are below half national standards.
It also proposed penalties ranging from 350 yuan ($52) to 11,200 yuan per month for excessive industrial noise, a step closer to a national taxation on various pollutants from business activities.
Provincial governments may "appropriately" raise rates based on local economic and pollution conditions, according to the draft law.
Instead of taxing polluters, China currently collects a "pollutant discharge fee," which provides rates that are almost equal or lower than the standard tax rates in the draft law.
China established the "pollutant discharge fee" system in 1979. In 2015, it collected 17.3 billion yuan from 280,000 companies.
The law is expected to solve the current system's loopholes, such as inadequate implementation and administrative interference, which will help with China's ongoing economic restructuring, according to the Financial and Economic Affairs Committee of the National People's Congress.
To support agricultural development, the tax will exclude pollutants from agriculture (except those from large animal husbandry farms) and mobile pollution sources including motor vehicles, ships and aircraft, as taxes have been tucked into their prices.
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