China Adopts Resource Tax Law

China’s top legislature on Monday voted to adopt the resource tax law, which will go into effect on September 1 next year.


Lawmakers approved the bill at the closing meeting of a five-day bimonthly session of the National People’s Congress Standing Committee.


The new law was based on the provisional regulations on resource tax, and incorporated changes to three major aspects. It introduces unified tax items, clarifies authorization on determining tax rates and standardizes tax reduction and exemption policies.


It also stipulates that China will start collecting water resources taxes on a trial basis.


The main purpose of levying a water resources tax is to strengthen taxpayers’ awareness of water conservation, curb the overexploitation of groundwater, and force high water-consuming enterprises to save water and improve water use efficiency, said Xu Guoqiao, an official with the Ministry of Finance.


“For individuals, the tax burden will not increase,” Xu said.


Source: Xinhua