SHANGHAI: China earned 9.6 billion yuan ($1.4 billion) in environmental tax revenues in the first half of 2018, up 22.1 per cent from a year earlier, after the system was overhauled at the start of 2018, state news agency Xinhua said on Friday.New tax laws give Chinese regions the flexibility to set and adjust levies on air pollutants such as carbon monoxide and sulphur dioxide, or water pollutants such as ammonium nitrate. The new scheme also covers noise pollution.
The State Administration of Taxation said 5.22 billion yuan in environmental taxes was collected in the second quarter, up 17 per cent from the first quarter, Xinhua added.
Most of the revenue came from sectors such as steel, thermal power, cement, oil and chemicals, it said.
The changes allow regions to impose higher levies on cities or districts with tougher pollution targets. Firms are charged for each unit of pollution produced, giving them a financial incentive to cut emissions.
The units are calculated on the basis of weights assigned to different pollution sources. Each unit is the equivalent of 16.7 kg (36.82 lb) of carbon monoxide or 0.95 kg (2.09 lb) of sulphur dioxide, for example.