The Chinese government is drafting a national law that will impose higher taxes on business establishments that contribute the most amount of pollution in the country.

Eco-business reported that the proposed tax law is being circulated to the general public to assess the views of the people.  Businesses that produce high amounts of air and water pollution, noise pollution, and solid waste are covered by the planned tax increase.

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The recommended tax rates for those industries that give off too much noise can range from a minimum of 350 yuan up to a maximum amount of 11,200 yuan depending on the level of decibel, according to Ecns.

Air polluters will pay 1.2 yuan based on the agreed limit.  One the other hand, Water pollutants pay a higher rate of at least 1.4 yuan.  Companies that produce solid waste can expect to pay a minimum of 5 yuan up to 30 yuan depending on the kind of solid waste they produce.

If the business establishment or factories produce more pollution beyond the agreed limit, their tax rate will be doubled.

In case the companies were able to cut their pollution by more than half the standard set by the government, they will only be required to pay half the normal tax rate.

Local government units have been given the authority to impose higher tax rates if it will safeguard the environment in the area.

Various government offices worked on the tax rate draft including the State tax officials as well as the ministries of finance and environment.  The country's cabinet said that the proposed law is meant to encourage the country's industrial sector to become more conscious of the environment and avoid wasting unnecessary energy.

Chen Jining, China's environment minister, believes that such laws are necessary since China's air, water, and surroundings are being filled with harmful pollutants.

Not all industries will be covered by the planned higher tax rate. Officials say all companies that maintain large animal farms, sewage treatment installation, railway cars, civilian and military airplanes and ships as well as all types of land vehicles are exempted if they stay within the prescribed limit.

The tax draft against polluters, however, does not specify the penalty for businesses that refuse to pay the appropriate tax rate.

TagsBeijing Air Pollution, China Tax Evasion, China environmental pollution