Our article: Improving the green tax system and promoting the construction of a beautiful China
Green tax system refers to a tax system that can achieve energy conservation and emission reduction, ecological and environmental protection, conservation and intensive utilization of resources, and promote green production and consumption. The green tax system is an important part of the ecological civilization institutional system and an important booster for achieving the "double carbon" strategic goal and building a beautiful China.
In 2023, the National Ecological and Environmental Protection Conference calls for improving green and low-carbon development economic policies and strengthening financial support, tax policy support, financial support, and price policy support. The "Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Promoting the Construction of Beautiful China" proposes "strengthening tax policy support" in "Improving the Guarantee System for the Construction of Beautiful China." The Third Plenary Session of the 20th Central Committee of the Communist Party of China further pointed out the reform direction of "improving the green tax system." At present, my country's economy and society have entered a critical stage of green, low-carbon and high-quality development. It is necessary to continue to promote and improve the construction of the green tax system, give full play to the functions of tax means, and provide strong support and guarantee for the construction of a beautiful China.
Current situation and problems of my country's green tax system
Since the tax reform in 1994, green tax system construction has been an important part of my country's tax reform with distinctive characteristics. At present, my country has formed a green tax system with China characteristics that covers multiple aspects of resource extraction, production, circulation, consumption, and emission, with environmental related taxes such as consumption tax, vehicle and vessel tax, and vehicle purchase tax as supplements, with environmental related tax policies such as value-added tax and corporate income tax as supplements to reduce carbon, reduce pollution, expand green, and grow green. Supported by preferential tax policies, it covers multiple links of resource extraction, production, circulation, consumption, and emission, and is useful for strengthening corporate pollution reduction behavior regulation. It has played an important role in promoting the green development and transformation of the industry.
However, there are still some problems in the current green tax system. Mainly reflected in: the scope of environmental protection tax is still narrow, and VOCS, construction noise, etc. are not included in the environmental protection tax, and the incentive and restraint effect is insufficient; the tax standard is generally low, and differentiated preferential policies are insufficient; the construction of tax-related information sharing platforms is not perfect, and the efficiency of collection and management and informatization level need to be improved. Tax incentives for new energy development, low-carbon technologies, and green innovation are insufficient, incentives to guide green consumption and production are limited, and the comprehensive application scope of tax incentives still needs to be expanded.
Overall thinking on improving the green tax system
In view of the current situation, we must coordinate and promote the continuous improvement of green taxation, improve the modern environmental governance system, and fully serve China's modernization with tax modernization.
First, adhere to goal orientation and advance steadily. Based on national conditions, coordinate the relationship between current and long-term, efficiency and fairness, focus on the critical time points of Beautiful China and carbon peak and carbon neutrality work, scientifically grasp the pace and intensity, and fully consider factors such as economic and social development, industrial structure adjustment, and industry development stages., the tax policy system for coordinating and promoting green and low-carbon development has been continuously improved.
The second is to adhere to the combination of incentives and constraints, and coordinate and promote multiple taxes. For environmental protection taxes, resource taxes and other taxes that have direct or indirect ecological and environmental protection functions, we will continuously optimize tax system elements, collection management, supporting guarantees, etc., and give full play to their role in promoting green and low carbon. Make full use of commonly collected taxes such as value-added tax, corporate income tax, and consumption tax, and continuously increase tax support for green and low-carbon products, technologies, projects, and enterprises.
The third is to adhere to the principle of tax neutrality. The formulation process of green tax system should effectively reflect the fairness and regulatory functions of green taxation, encourage enterprises to improve their ability and level of energy conservation and environmental protection through targeted tax design, and promote the green transformation and upgrading of backward industries. At the same time, policy design should avoid negative impacts on other taxpayers and the economy and society, minimizing additional tax burdens and maximizing additional benefits.
Policy suggestions for improving green tax system
In order to further improve the green tax system, the author recommends the following:
The first is to speed up the improvement of environmental protection taxes. Expand the scope of environmental protection tax collection to cover key areas and key links in pollution prevention and control. Study the inclusion of VOCs and building noise in the scope of environmental protection tax collection; further improve solid waste tax items, and give full play to the function of tax policies to support the construction of a "waste-free society". Study the necessity and feasibility of using carbon taxes as a supplement to carbon emissions trading. Fully consider the needs and work priorities of pollution prevention and control, closely connect with the emission permit system, and fully pre-evaluate the possible economic, social and environmental impacts of expanding the scope of environmental protection tax collection.
Scientifically adjust environmental protection tax standards and further exert the role of tax incentives and constraints. Study ideas and countermeasures for optimizing tax standards. Comprehensively consider factors such as the level of economic and social development and pollution control costs, and scientifically set and guide local governments to formulate tax standards that meet the current and future ecological and environmental protection needs. Study the tax classification system and establish a mechanism linked to economic indicators such as GDP and the quality of the ecological environment, so that the tax standard is compatible with the level of economic development and environmental quality. Establish a regular evaluation mechanism for tax standards.
Improve preferential tax policies, encourage enterprises to clean production and pollution control, and reduce the burden on enterprises to reduce emissions. Study the addition of preferential tax cuts and increase preferential tax cuts within the existing tax reduction range to stimulate taxpayers 'motivation to continue to reduce emissions. Study and formulate preferential tax policies to encourage enterprises in key industries to adopt green and low-carbon technologies, carry out ultra-low emission renovations, and achieve high-level environmental performance.
Strengthen the connection between environmental protection taxes and emission permit systems. Study the further connection between environmental protection tax taxable pollutants and emissions and pollution permit management. Increase the optimization and operation and maintenance support of tax-related information sharing platforms, optimize platform docking functions, realize real-time push and sharing platforms for dynamic management data of emission permits, and further improve the implementation efficiency of tax policies.
The second is to increase the intensity of preferential corporate income tax policies. Increase tax credits and incentives for environmental protection and low-carbon development. Reasonably increase the proportion of tax credits payable for enterprises purchasing special equipment for environmental protection, energy conservation and water conservation. Gradually improve preferential income tax policies for green and low-carbon technologies, projects and enterprises such as new energy, low-carbon transportation, low-carbon buildings, technological carbon sequestration, ultra-low emissions, and environmental performance A-level creation. Study and implement preferential policies to levy corporate income tax at a reduced rate of 15% for wind and lights-related new energy industries. Timely update the catalog of corporate income tax incentives such as energy conservation, environmental protection, and comprehensive utilization of resources, and increase the synergy with green preferential policies for other taxes such as value-added tax to better leverage the role of taxation in promoting energy conservation, environmental protection and comprehensive utilization of resources.
The third is to further strengthen preferential value-added tax policies. Encourage the promotion and services of green and low-carbon technologies. Moderately reduce the threshold of preferential value-added tax policies for contract energy management projects, and introduce preferential forms of value-added tax other than reductions, exemptions, and tax refunds, such as allowing enterprises that have received green and low-carbon related technologies to accelerate amortization or one-time amortization. The current value-added tax refundable policy in the field of wind power generation can be extended to other clean energy power generation fields, and the preferential policy of 50% of the value-added tax on photovoltaic power generation can be continued. Study preferential tax policies for alternatives and alternative technologies related to ozone depleting substances (ODS) and hydrofluorocarbons (HFCs), provide tax exemptions and exemptions for enterprises 'green and low-carbon product applications, low-carbon technology promotion and services, and encourage consumers to choose a more low-carbon and environmentally friendly alternative.
Increase the intensity of value-added tax incentives for comprehensive utilization of resources. On the basis of implementing the current preferential tax policies related to the production and utilization of recycled water, we will further increase value-added tax incentives. Compared with sewage treatment services, the value-added tax rate for sewage treatment expenses of recycled water production enterprises is calculated at 6%. For those who use crop straw as raw material to produce pulp, straw pulp washi, 100% of the value-added tax will be refunded immediately. Update the "Preferential Value-added Tax Catalogue for Comprehensive Utilization of Resources Products and Services" and include the sludge produced after sewage treatment for resource utilization as building materials into the "Preferential Value-added Tax Catalogue for Comprehensive Utilization of Resources".
Study and formulate preferential tax policies for the national carbon market, solve outstanding tax issues in current carbon trading, and standardize tax and invoice management in the national carbon market. Study the exemption from value-added tax or the implementation of preferential tax policies for carbon emissions trading and certified voluntary emission reduction trading.
The fourth is to increase the intensity of green and low-carbon transformation of consumption tax. Improve the consumption tax exemption requirements for raw and auxiliary materials involving VOCs such as coatings. According to relevant standards such as "Technical Requirements for Paint Products with Low Volatile Organic Compound Content"(GB/T 38597-2020),"Limits for Volatile Organic Compounds (VOCs) Content in Inks"(GB 38507-2020),"Limits for Volatile Organic Compounds in Adhesives"(GB 33372-2020),"Limits for Volatile Organic Compound Content in Cleaning Agents"(GB 38508-2020), the exemption conditions for coating consumption tax are revised. The study will include inks, adhesives, cleaning agents and other products with less environmental impact into the scope of consumption tax exemption, and reasonably set exemption conditions based on standard limits.
Increase the restriction of consumption tax on high-energy-consuming and high-polluting products. Consider including more qualified goods related to energy consumption, resource protection, environmental pollution, etc. within the scope of consumption tax, and give full play to the regulatory role of consumption tax in guiding consumption and promoting environmental protection.
The fifth is to improve resource taxation policies. Promote research on resource tax rates reflecting ecological and environmental costs. The tax rate design of resource tax should consider the ecological environment and carbon emission costs of the mining of different resource products, and adjust it around the goal of reducing the proportion of fossil energy consumption and promoting the mining of energy minerals and the transformation of consumption structure in my country. Improve preferential resource tax policies.
Further promote the pilot water resource tax. Taking into account the current situation of serious water shortage in my country, we will further summarize the experience and practices of pilot provinces and cities for water resources tax, and expand the regional scope of pilot water resources tax as soon as possible. In terms of the selection of pilot areas, we can actively promote the pilot projects of water resources taxes in provinces and cities with per capita water resources significantly lower than the national average, create favorable conditions for the comprehensive introduction of water resources taxes, and gradually establish a fair, standardized, powerful regulation, and efficient collection and management. Water resources tax system.
Sixth, optimize tariff and export tax refund policies. Optimize the construction of tariff green policy system. Combined with the national "double carbon" strategic goals and the development deployment of green and low-carbon industries, we will promote the establishment of a green tariff policy system that is conducive to guiding the green and low-carbon upgrading of industries. Give full play to the dynamic control function of tariff policies, coordinate the relationship between imports and exports, upstream and downstream, production and consumption, increase the degree of green tariffs, and guide green industrial upgrading.
Timely update the comprehensive environmental protection directory and continue to improve export tax refund policies. Export tax rebates have a positive impact on adjusting industrial structure and optimizing export commodity structure. Continue to reduce or cancel the export tax refund rates for related energy-consuming and highly polluting products, thereby reducing the export scale of these industries and reducing the energy consumption and pollution emissions of polluting products in the production. For clean products and emerging industries, export tax rebates should be maintained or appropriately increased to encourage exports.
Author's unit: Environmental Protection Tax Research Center, Environmental Planning Institute, Ministry of Ecology and Environment
