Study On Tax Rate Standard And Tax Preference Of Environmental Protection Tax Based On Marginal Abatement Cost Approach

The environmental protection tax law of the People's Republic of China was implemented on January 1,2018.Compared with the sewage discharge fee system,its tax rate collection standard and tax preference have been greatly changed.From the environmental protection tax standards issued by various regions,there are great local differences.Based on the data of environmental quality,economic indicators and pollutant emissions in 2016,this paper studies the relationship between tax rates and these variables.Taking Liaoning Province as an example,based on 14 cities of the province's steel,electric power,chemical industry,cement 4 emission and control of cost data,establish pollution reduction cost function model calculating the province the marginal cost of governance of major pollutants discharged into the atmosphere,water and preferential tax scale,comprehensive economic development and the management cost of setting different tax rates for the schemes to explore environmental protection tax rate and tax breaks to the influence of the province.Research shows that:1.Through the comparison between environmental protection tax rate and various environmental and economic indicators,it is found that the current tax rate formulation of various regions has the following characteristics:regions with poor air quality or good economic development have higher environmental protection tax rate;Environmental protection tax rates are higher in areas with higher and lower emissions.2.Through multiple linear regression analysis,it is found that there is no obvious rule between the rate of environmental protection tax and the carrying capacity of the environment,the current situation of pollutant discharge and the economic,social and ecological development 3.The marginal treatment costs of SO2,NOx,COD and NH3-N of major pollutants in Liaoning province are 3.44,5.03,3.81 and 8.15 yuan/pollution equivalent respectively;The marginal treatment cost of major pollutants in key industries is different.4.An appropriate increase in the rate of environmental protection tax has little overall impact on economic development and can improve the incentive effect of tax incentives.Based on the above findings,four suggestions are put forward:First,we should gradually promote regions with poor environmental quality and high pollutant emissions to adjust the environmental protection tax standard(such as Liaoning),which can be raised to 2.4 yuan/pollution equivalent for atmospheric pollutants and 2.8 yuan/pollution equivalent for water pollutants.Second,appropriately raise the environmental protection tax rate in areas with high economic development level but general environmental quality(such as Zhejiang and Anhui);Third,the industry differences into the environmental protection tax rate setting into consideration.Fourth,tax incentives can be incorporated into the contract environmental service model as revenue to reduce the tax burden on enterprises.The innovation of this paper is to analyze the interrelation and improvement trend of current environmental protection tax rate formulation in urban areas of each province,and empirically analyze the establishment of tax standard of environmental protection tax and its impact on enterprise operation at the provincial level,so as to provide some suggestions for future environmental protection tax reform.