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This is China's first tax clearly designed for environmental protection.
The new tax replaces the "pollutant1 discharge fee" which authorities had been collecting for nearly 40 years.
Professor Lan Hong with Renmin Univerity says the new rules bring more standardized2 legal support for the fight against pollution.
"The new environment tax system is more serious and intensive in execution. Previously3, companies that refused to pay their pollutant discharge fees only received a minor4 administrative5 punishment. Now if enterprises fail to pay taxes, it means they are violating the law, which is a much more serious situation."
China had been collecting a pollutant discharge fee since 1979.
However, some local governments exploited loopholes and exempted6 companies that were big contributors to their fiscal7 revenues.
For years, regulators have been suggesting replacing the fee system with tighter restrictions8.
The newly released tax is part of a broader plan to create a green financial and taxation9 system to promote pollution control.
Bie Tao is an official with the Ministry10 of Environment Protection.
"Under the new system, the amount of tax is determined11 at the provincial12 level but still needs to be reported to the central government. The principle is that companies with high pollutant discharges will pay more; others will pay less. Pollutant discharges below half of the standard amount means taxes will also be cut in half. Discharges below 70 percent of the standard amount will see taxes cut by 25 percent."
The Environmental Protection Tax targets companies and public institutions that discharge pollutants13 directly into the environment.
Companies will also have to pay for producing noise, air and water pollutants, as well as solid waste.
Chang Jiwen with China's Development Research Center at the State Council says the new tax system should help the structural14 adjustment of certain industries.
"After the implementation15, the economy will definitely be impacted, especially for some contamination generating industries. Air, water and solid waste related companies will need to be careful. Even though the tax amount will be similar to the previous pollutant discharge fees, it's expected to increase in the future. This will force some companies to upgrade their facilities to environmentally friendly ones. Companies that fail to adapt to the difference might end up being forced to shut down."
The tax money collected will be allocated16 to the local governments' budgets for pollution control.
Beijing, Tianjin, Hebei, Shanghai, among other regions, have the highest taxes, while Xinjiang, Liaoning and Jilin have the lowest.
The Central Economic Work Conference last month listed tackling pollution as one of the three tough battles that China aims to win in the next three years.
1 pollutant | |
n.污染物质,散布污染物质者 | |
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2 standardized | |
adj.标准化的 | |
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3 previously | |
adv.以前,先前(地) | |
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4 minor | |
adj.较小(少)的,较次要的;n.辅修学科;vi.辅修 | |
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5 administrative | |
adj.行政的,管理的 | |
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6 exempted | |
使免除[豁免]( exempt的过去式和过去分词 ) | |
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7 fiscal | |
adj.财政的,会计的,国库的,国库岁入的 | |
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8 restrictions | |
约束( restriction的名词复数 ); 管制; 制约因素; 带限制性的条件(或规则) | |
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9 taxation | |
n.征税,税收,税金 | |
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10 ministry | |
n.(政府的)部;牧师 | |
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11 determined | |
adj.坚定的;有决心的 | |
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12 provincial | |
adj.省的,地方的;n.外省人,乡下人 | |
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13 pollutants | |
污染物质(尤指工业废物)( pollutant的名词复数 ) | |
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14 structural | |
adj.构造的,组织的,建筑(用)的 | |
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15 implementation | |
n.实施,贯彻 | |
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16 allocated | |
adj. 分配的 动词allocate的过去式和过去分词 | |
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