Research On The Implementation Effect Of Environmental Protection Tax In China

Since the reform and opening up,China’s economic strength has been constantly improving,but at the same time,the environmental pollution caused by it can not be underestimated,which will not only affect the health of residents,but also threaten the sustainable development of China’s economy.In recent years,China has successively issued a series of policies to prevent the further deterioration of environmental problems.In 2007,it first proposed to levy environmental protection tax.Then in2016,the Standing Committee of the National People’s Congress voted to adopt the environmental protection tax law of the People’s Republic of China and formally launched the tax on January 1,2018,gradually improving the environmental protection tax system of China.In this context,this paper will study the implementation effect of environmental protection tax.First of all,the environmental protection tax is briefly described in theory,and the evolution process from pollution discharge fee to environmental protection tax in China is introduced in detail.Then,the public goods theory,externality theory and sustainable development theory on which the environmental protection tax is based are explained in detail.Secondly,according to some statistical data,this paper summarizes and analyzes the positive effects of the implementation of the environmental protection tax policy,including: coordinating economic benefits,promoting the transformation and upgrading of enterprises;building a green tax system,promoting the adjustment of industrial structure;reducing the pressure of the government,optimizing the financial revenue structure;protecting the ecological environment,promoting the construction of ecological civilization,etc.Then it analyzes the problems existing in the implementation of environmental protection tax: the narrow scope of environmental protection tax,unreasonable tax rate setting,defects in tax preferential policies and difficulties in cross sector cooperation.After a general analysis of the implementation effect of environmental protection tax in China,the paper makes an empirical analysis of its implementation effect,mainly from two aspects of economic effect and environmental protection effect.In both parts,panel data of 31 provinces and regions in China are selected.Among them,China’s environmental protection tax has only been levied for more than one year,and the data is less.According to the environmental protection tax law,China’s environmental protection tax is derived from the emission fee.Therefore,the dataselected for the core variable of empirical analysis in this paper is composed of the emission fee in 2005-2017 and the environmental protection tax in 2018.Based on the tax production function proposed by Li Shaorong and Geng Ying,and Kuznets Curve Model(EKC model),the two parts use Stata software to analyze the panel data and explore the impact of environmental tax on economy and environmental protection.Finally,based on the practical experience of foreign developed countries,combined with China’s national conditions,in view of the current problems in the implementation of environmental protection tax,this paper puts forward suggestions for improvement: expanding the scope of tax collection,adjusting the scope of application of tax preferences,appropriately increasing the tax rate,improving the collection and management mechanism,etc.