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China MEP: No Environmental Protection Tax on VOCs?

  •   13 Mar 2018
  •    Matt Lyu
  •    963
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    On Mar 6th, 2018, Chinese Ministry of Environmental Protection answered a question regarding the charge on VOCs emission.

    The previous pollutants emission fee system was abolished to coincide with the implementation of the Environmental Protection Tax, meaning that the pollutants emission fee doesn’t apply to VOCs emission now. Additionally the annexed table 2 of the Law of Environmental Protection Tax, Table of Taxable Pollutants and Pollution Equivalents, didn’t include VOCs as a single taxable pollutant. So MEP stated on the website that “VOCs are not subject to either pollutants emission fee, or the environmental protection tax”.

                                      Figure 1. The answer by Ministry of Environmental Protection


    However, the Table of Taxable Pollutants and Pollution Equivalents does specify 44 kinds of taxable air pollutants. Among them, there are 19 kinds of VOCs. ChemLinked’s understanding is that these 19 kinds of VOCs are still subject to the environmental protection tax, although this does seem somewhat contrary to the broad statement made by MEP.

    A lot of provinces and municipalities directly under the central government implement local charge standards on VOCs emission. After the environmental protection tax was implemented, these charges will be transformed into the form of tax. This is expected to be a long and complicated process for the local government and environmental protection authorities. ChemLinked recommends the industry to consult with local authorities in regards to the specific monitoring and calculation methods because the local governments were authorized to develop stricter emission and levy standards than the Law of Environmental Protection Tax.

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