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Carbon tax included in China’s new green tax policy plan
February 21, 2013
Carbon tax included in China’s new green tax policy plan
China is to introduce a set of new taxation policies designed to preserve the environment, including a tax on carbon dioxide emissions, according to a senior official with the Ministry of Finance (MOF). This is in addition to establishing seven pilot carbon markets this year with the goal of creating a national cap-and-trade scheme by the end of 2015.
In an article published on the MOF’s website, Jia Chen, head of the tax policy division, said the government will collect environmental protection tax instead of pollutant discharge fees, as well as levy a tax on carbon dioxide emissions. These will be raised by local tax authorities rather than the Environmental Protection Department, he said.
In his article, Jia said the government is also looking into the possibility of taxing energy-intensive products such as batteries, as well as luxury goods such as aircraft that are not used for public transportation. To conserve natural resources, the government will push forward resource tax reforms by taxing coal based on prices instead of sales volume, as well as raising coal taxes. A resource tax will also be levied on water.
China is the world’s largest emitter of greenhouse gas and has set goals for cutting emissions. The government has vowed to reduce carbon intensity per unit of economic output by 40 to 45 percent by 2020 in comparison to 2005 levels.
Read more at CleanBizAsia.
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