China passes landmark law to slap steep taxes on polluters
Levies could put some firms out of business but may not cover the real cost of air, soil and water contamination, analysts say
Costs are expected to escalate for mainland polluters with the passage on Sunday of a landmark environmental protection tax designed to reduce air, soil and water contamination.
The legislation, which comes into effect in January 2018, will tax factories, power plants and other pollution emitters for releasing contaminants such as sulphur dioxide, a key contributor to the smog that has choked much of the country in the last couple of weeks.
Analysts said the levies could be steep enough to push some dirty firms out of business, going some way to answering criticism that the central government has been half-hearted in tackling pollution.
Among the critics is Peter Navarro, US president-elect Donald Trump’s nominee for head of his new White House National Trade Council, who claims Beijing’s lax regulation of pollution has undermined trade fairness.
Under the law, polluters will have to pay up to 12 yuan (HK$13.40) for each 0.95kg of nitrogen oxide or sulphur dioxide they release.
