Recently, the Standing Committee of the National People's Congress voted to pass the Environmental Protection Tax Law of the People's Republic of China, which will come into effect on January 1, 2018. Environmental protection tax has become the 18th tax category in China. The reporter interviewed relevant departments and experts on the hot topic of environmental tax legislation.
People's Daily: Conversion of pollution discharge fees to environmental protection tax - Enhancing law enforcement rigidity and reducing local interference
What is the use of changing fees to taxes
Strengthening the rigidity of law enforcement, forcing high polluting and high energy consuming enterprises to transform and upgrade
The Environmental Protection Tax Law is the first 'Green Tax Law' in China after implementing the principle of tax legality, and it also sets a benchmark and demonstration for the legislation of other tax types in the future. Liu Jianwen, a professor at Peking University Law School, believes that the introduction of an environmental protection tax is a concrete manifestation of the green development concept established at the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China, which is conducive to reducing pollutant emissions, promoting ecological environment protection and ecological civilization construction.
The system of collecting pollutant discharge fees in China has been implemented for many years. In response to the situation of key pollution sources that affect the environment, China has chosen to impose pollution discharge fees on four types of pollutants: air, water, solids, and noise. The use of fees as an economic tool has encouraged enterprises to strengthen environmental governance and reduce pollutant emissions, playing an important role in preventing and controlling environmental pollution and protecting the environment in China.
In 2014, based on the new situation and requirements of pollution control, the country further adjusted the collection standards of pollutant discharge fees. On the basis of the original standards, the overall adjustment was doubled, and the collection standards were allowed to be appropriately raised in key pollution prevention and control areas and economically developed areas.
In practical implementation, there are also some problems with the collection of pollutant discharge fees. For example, insufficient enforcement rigidity, intervention by local governments and departments, etc., have affected the effective functioning of the system. "Wang Jianfan, Director of the Tax Department of the Ministry of Finance, introduced that in response to this situation, it is necessary to implement the reform of environmental protection fees into taxes, build a green tax system that promotes economic structural adjustment and development mode transformation, and further strengthen the construction of environmental protection systems.
Environmental protection tax can form an effective constraint and incentive mechanism, and stricter tax collection and management can enhance the rigidity of law enforcement, reduce the intervention of local governments and departments, and effectively solve the problem of enterprises owing pollution fees. At the same time, enterprises that take proactive measures to reduce the concentration of pollutant emissions will be given tax incentives to improve their processes and reduce pollutant emissions.
Liu Jianwen believes that levying environmental taxes can force high polluting and high energy consuming enterprises to transform and upgrade, promote economic structural adjustment and development mode transformation. At the same time, the Environmental Protection Tax Law is effectively linked with the Environmental Protection Law. Taxpayers not only fulfill their tax obligations to pay environmental protection taxes, but also bear legal responsibility for the environmental damage caused in accordance with the provisions of the Environmental Protection Law.
How to pay taxes on corporate emissions
Set the partial sewage fee charging standard as the lower limit of environmental tax amount
An important principle of this legislation on environmental protection tax is to 'shift' the pollutant discharge fee system to the environmental protection tax system, achieving a smooth transition, "said Wang Qing, Deputy Director of the Economic Law Office of the Legislative Affairs Commission of the Standing Committee of the National People's Congress.
Wang Qing introduced that the principle of "shifting" mainly manifests in: treating the original payer of pollution fees as the taxpayer of environmental protection tax; Set the tax items for environmental protection tax based on the current sewage charging projects; According to the current billing method for pollutant discharge fees, establish the basis for calculating environmental protection taxes; Based on the current sewage fee charging standards, set the tax amount standards for environmental protection tax.
For example, the current national standards for imposing pollution discharge fees on air pollutants and water pollutants are not less than 1.2 yuan and 1.4 yuan per pollution equivalent, respectively; At the same time, local governments are encouraged to raise their fee standards, but there is no upper limit set. In practice, seven places have already raised their fee standards, and Beijing's adjusted fee standards are 8 to 9 times the minimum standard. The Environmental Protection Tax Law has added an upper limit based on the current lower limit of pollutant discharge fees, which does not exceed ten times the minimum standard, taking into account local needs and reflecting the principle of tax legality. Each province can choose the specific applicable tax rates for air pollutants and water pollutants within the above range.
The Environmental Protection Tax Law will set a lower limit for the amount of environmental protection tax based on the charging standards for some pollutant discharge fees. The tax standard is 1.2-12 yuan per pollution equivalent for air pollutants; Water pollutants cost 1.4-14 yuan per pollution equivalent; Solid waste ranges from 5 yuan to 1000 yuan per ton for different types, with hazardous waste costing 1000 yuan per ton; Industrial noise shall be paid at a rate of 350 to 11200 yuan per month based on the number of decibels exceeding the standard.
What impact does the introduction of environmental taxes have on the burden of enterprises? Considering the current economic environment and the issue of the burden capacity of enterprises, overall this system is a smooth transition. By fulfilling environmental responsibilities and reducing pollutant emissions, enterprises can pay less taxes. In this sense, the burden on enterprises is appropriate, "Wang Jianfan believes.
What changes have been made in environmental protection investment
The energy-saving and environmental protection expenditures arranged in the fiscal budget will continue to increase
The current pollution discharge fee is divided between the central and local governments at a ratio of 1:9. A new change after the implementation of environmental protection tax is to consider that local governments bear the main responsibility for pollution control. In order to mobilize local enthusiasm, it is proposed to use all environmental protection tax revenue as local income, and the central government will no longer participate in the sharing, "Wang Jianfan revealed.
According to the provisions of the Budget Law, tax revenue should be included in the general public budget management, and used to ensure and improve people's livelihoods, promote economic and social development, maintain national security, and generally not linked to expenditures. Considering the connection with the Budget Law, after the implementation of the environmental tax, the finance department will make adjustments in accordance with relevant regulations.
Although the environmental protection tax does not adopt the method of earmarked funds, it will not reduce the investment in pollution prevention and environmental protection. Wang Jianfan explained that the expenditure originally arranged by the pollution discharge fee will be included in the same level financial budget and fully guaranteed according to the principle of not reducing the intensity.
In fact, in recent years, the central and local governments have spent far more on environmental protection than the sewage fees collected. During the 12th Five Year Plan period, the national general budget allocated 1.76 trillion yuan for energy conservation and environmental protection, with a focus on supporting the control and prevention of air, heavy metal, and water pollution in key river basins. Among them, the expenditure on energy conservation and environmental protection reached 481.4 billion yuan in 2015, while the national sewage fee collection amount was only 17.3 billion yuan. In the future, the investment in energy-saving and environmental protection expenditures arranged in the fiscal budget will continue to increase, "said Wang Jianfan.