Taxation of environmental pollution in China

Abstract

The article analyzes the current legal regulation of the environmental protection tax in the People’s Republic of China, as well as its importance in the context of reforming the environmental legislation of China. The environmental problem makes it necessary to take large-scale measures to change the situation in the country, while improving the provisions of tax law is an important mechanism. The article draws conclusions on the prevalence of the regulatory function of the environmental protection tax introduced in 2018 over its fiscal function. The study of the elements of taxation reveals a number of internal contradictions inherent in the Law of the PRC on environmental protection tax. Special attention is paid to the consequences of changing the legal regime of environmental pollution payments, which was previously recognized by the legislator as a non-tax public payment, not a tax. This change is assessed from the standpoint of a positive impact on the level of guarantees of the rights of subjects of tax relations, primarily taxpayers, as well as improving the efficiency of the new tax collection in light of the application of legal mechanisms provided by the rules of Chinese tax law. The author also makes a conclusion on the principle of “polluter pays,” providing for the compulsory financial security of business entities and activities for the protection of the environment and compensation of harm, where there is a similarity of Russian and Chinese legal regulation. The results of the study presented in this article can be taken into account in the development of changes to the current legislation of the Russian Federation.