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MEP Proposes Removal of Tax Rebates on “Dual High” Products

Recently, China’s Ministry of Environmental Protection has circulated the “Comprehensive Directory of Environmental Protection (2012)” to other Ministries and organizations such as National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology, Ministry of Commerce (MOFCOM), People’s Bank of China (PBC). The Directory listed 596 categories of high polluting and high environmental risk (“dual high”) products and 68 high polluting processing technologies. As some of the “dual high” products are still enjoying tax rebates, the MEP suggests to bring the rebate tax to a halt.

Among the 596 “dual high” products, nearly 20 of them are targets of control during the 12th Five year Plan. That is to say, ban or restriction plans for these products might be issued in next five years. Furthermore, over 150 kinds of high toxicity, high hazard and heavy metal characterized products are listed in the Directory. They consist of POP pesticides, arylamine dyestuffs, organotins and antifouling paints. Other 400 products are of high environmental risks.

The MEP introduces that the Comprehensive Directory is compiled under studies and analysis of the technologies and facilities involved in the manufacturing of the products. Differentiated policies will be imposed on the technologies and products based on the environmental risks caused by the products and their processing. The high environmental risk products and technologies will be influenced by more stringent supervision and financial policies.

Previously, China has published series of guidance and directories such as the “Catalogue for the Guidance of industrial structure Adjustment”, “Catalogue for the Guidance of backward technologies & products” and other tax rebates removal or ban lists. The Comprehensive Directory from the MEP has already been  widely and directly applied by the Chinese policy makers. Meanwhile, 64 environmental-friendly technologies and 28 species of environmental-protecting facilities are included in the Comprehensive Directory, which might be encouraged and promoted at the policy level in the future.

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