Implications of European Eco-tax Policy On Chinese Current Eco-tax Initiatives
Haiying Lin, Hainan Tax Bureau, China
Drawing the reference from OECD countries in Europe, this paper aim at designing Chinese Eco-tax, with case study of Hainan Province. After SARS, as an "Ecological Province", Hainan attaches great importance on environmental protection, while our current ecological instruments (charges & fees) are not strict enough to cope with the environmental problems. The implementation of eco-tax can stimulate the industries to adopt environmental measures/technologies and consciously reduce pollution, meanwhile can collect ecological fund for government to invest in environmental protection infrastructure and promotion schemes.

Based on our current practices, the eco-tax campaign is designed as followed: Firstly, check and change those tax regulations that are not in line with environment protection; reshape tax holidays and penalties to encourage environmental protection behavior. Secondly, improve current tax system and enlarge collection scope of current Resource Tax so that more resources such as land, forest, air can be protected; expand Consumption Tax scope in order to discourage usage of freon and infusible wrapper etc.. Thirdly, transform the current "pollution charge" system to "eco-tax" system: initiate such tax items as water pollution tax, air pollution tax, garbage tax and gasoline tax etc.

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