The draft environmental protection tax law was submitted to the Standing Committee of the National People's Congress for consideration on August 29. With the progress of legislative procedures, China's current 18 taxes are expected to increase to 19. Experts believe that environmental protection tax will become a big weapon in pollution control and environmental protection.
What is the legal basis for the one-hot tax reform?
"The enactment process of environmental tax law will become a model for future tax legislation." Liu Jianwen, a professor at the Law School of Peking University, said that the principle of legal taxation is reflected not only in form but also in content, including better respect for public opinion and sentiment The law itself is also recognized by taxpayers. Liu Jianwen introduced that the environmental protection tax law has been submitted for review, and the issue of the real estate tax law entering the legislative process has attracted much attention. "But the real estate tax law is more complicated than the environmental protection tax law because environmental protection tax involves more enterprises, does not involve natural persons, and has less resistance. Real estate tax involves the interests of millions of households, and everyone will pay close attention to it."
The Legislative Plan of the Standing Committee of the National People's Congress has included the Real Estate Tax Law as a category 1 legislative item.
Will Hotspot 2 increase the burden on enterprises?
The taxable pollutants of the environmental protection tax include air pollutants, water pollutants, solid waste and noise. The taxpayer is an enterprise, and the influential party is mainly an enterprise. China has established a sewage fee system since 1979. From 2003 to 2015, the country has levied a total of 21.115 billion yuan in sewage charges, and more than 5 million households have paid sewage charges.
The impact of environmental protection tax on two types of enterprises may be relatively large: first, companies that originally paid irregular sewage charges will have more compulsory efforts in the future; second, industries that are easy to measure pollutants, such as paper and chemical industries, the future pressure will be bigger. Luo Jianhua, secretary general of the Environmental Chamber of Commerce of the All-China Federation of Industry and Commerce, said that the change in environmental protection fees and taxes will promote the reduction of capacity in the current steel and coal industries. "In the process of reducing production capacity, it will be difficult to achieve the elimination of who retains who. It will be difficult to achieve by administrative orders alone. In the future, if these companies want to survive, the first level is the environmental barrier. Can they afford the cost of environmental taxes and solve the problem with market mechanisms." In addition, due to large regional differences, the draft does not apply a one-size-fits-all approach to the applicable tax amount, giving localities the power to adjust based on regulations.
Will Hot Spot Three affect people's lives?
The environmental protection tax is mainly targeted at industrial enterprises and has little impact on people's lives. Luo Jianhua said that people ’s automobile exhausts, cooking fumes, etc. in daily life are now exempt. Many of the major steel and cement emitters monitored by the environmental protection tax belong to industries with overcapacity. In the case of oversupply, even if there is oversupply, Cost increase companies will not easily increase prices.
Top 4 Who will be the tax revenue?
Paying more taxes and paying more taxes, and paying less emissions and pay less taxes, is the main purpose of collecting environmental taxes. All localities are responsible for environmental protection. After the environmental protection tax is levied, all revenues are owned by local governments. Some people in the industry have suggested that the environmental protection tax is a “technical tax”. The pollution discharge fee was previously collected by the environmental protection department. Instead, the environmental protection tax was collected by the taxation department.