25 On [date], the 25th Session of the Standing Committee of the 12th National People's Congress adopted the “Environmental Protection Tax Law” by vote. As China’s first single-tax law aimed at promoting ecological civilization, the “Environmental Protection Tax Law” will take effect on [date]. 2018 Year 1 Moon 1 Effective from the date of issuance.

　　According to the Environmental Protection Tax Law, enterprises, institutions, and other producers and operators that directly discharge taxable pollutants into the environment are the taxpayers. The tax objects include atmospheric pollutants, water pollutants, solid wastes, and noise as specified in the “List of Environmental Protection Tax Items and Rates” and the “Taxable Pollutants and Equivalent Values” attached to the Environmental Protection Tax Law. 4 Classified taxable pollutants.

　　With regard to the tax base, the amount of taxable pollutants emitted shall serve as the basis for taxation. Specifically, for air pollutants and water pollutants, the tax base shall be determined by the pollution equivalent number corresponding to the emission volume; for solid wastes, the tax base shall be the volume of solid waste discharged; and for noise, the tax base shall be the number of decibels exceeding the national standard.

　　With regard to specific tax rates, the current emission fee standards will serve as the lower limit for the environmental protection tax. The tax rate range for air pollutants is set at per pollution equivalent. 1.2 Yuan -12 Yuan; the tax rate for water pollutants ranges from per pollution equivalent. 1.4 Yuan -14 Yuan; the tax rate for solid waste, by type, is per ton. 5 Yuan -1000 Yuan; the tax amount is per month, based on the number of decibels by which the noise exceeds the standard. 350 Yuan -11200 Yuan.

　　In terms of tax administration, after the environmental protection fee was converted into a tax, the collection authority was shifted from the environmental protection department to the tax authorities, with the environmental protection department providing cooperation and making the necessary arrangements. “ Enterprise filing, tax collection, environmental monitoring, and information sharing ” the tax collection and administration model. Meanwhile, all revenue from the environmental protection tax will be treated as local tax revenue and incorporated into the general public budget.

　　Citing Wang Jianfan, Director of the Tax Policy Department of the Ministry of Finance, the Economic Reference News reported that an important principle behind the formulation of this Environmental Protection Tax Law is to ensure a smooth transition from the fee-based system to a tax-based system. The tax items will be set based on the existing pollution discharge fee items, and the current standards for collecting pollution discharge fees will serve as the lower limit for environmental protection taxes. In addition, the law grants certain authorities to local governments, allowing them to determine specific tax rates within the scope of authorization according to the needs of environmental governance. Overall, this system represents a smooth transition.

　　The introduction of the environmental protection tax this time adopts a fee-to-tax conversion approach. The objects and scope of taxation are essentially the same as those of the current pollution discharge fees—namely, pollutants such as air, water, solid waste, and noise that are directly discharged into the environment. In the future, depending on new circumstances and evolving situations, the scope of the environmental protection tax can be adjusted accordingly. The name “Environmental Protection Tax Law” aligns with the direction of tax system reform and leaves room for expanding the scope of taxation and for broader tax system reforms in the future.

　　Wang Jianfan stated that the “Environmental Protection Tax Law” has been in effect since... 2018 Year 1 Moon 1 Effective from the date of issuance. The environmental protection tax is a newly introduced tax with broad coverage. The fee collection and tax collection systems need to be transitioned, requiring extensive preparatory work both in terms of policy formulation and administrative enforcement. Specifically, this includes drafting implementing regulations for the tax law, refining specific policies and enforcement measures, and submitting these documents to the State Council for approval according to established procedures. For matters authorized to be decided by local authorities—such as determining specific applicable tax rates and increasing the number of taxable pollutants subject to taxation at the same emission outlet—each province (autonomous region, municipality) will determine and submit these matters for approval following legal procedures.

　　Industry experts point out that the revenue generated from the environmental protection tax is not substantial. The primary purpose of transitioning from pollution discharge fees to a tax is not to raise fiscal revenue, but rather to leverage taxation as an incentive to encourage polluting entities to reduce their pollutant emissions and create a better living and working environment for the people. As a major initiative in the fiscal and tax fields aimed at advancing ecological civilization, the introduction of the environmental protection tax further enhances China's existing system. “ Green taxation ” The system’s environmental significance far outweighs its fiscal revenue implications.