The Research Of Fiscal Taxation Policies About Rural Household Waste

The 18th National Congress of Communist Party of China proposed the "Five-in-One" layout to guide the overall situation, among which the construction of ecological civilization requires China’s development to go along the road of low-carbon development, green development and cycling development, so as to reverse deterioration of the ecological environment from the source and create a good environment for the citizen. With rapid development of urbanization, the situation of resource constraints, environmental stress and social management has become more serious; environmental pollution in rural areas has been increasingly serious and environmental overdraft highlights in the vast rural areas; as rural household waste is the main source of rural environmental pollution, improper regulation of it will seriously threaten the rural ecological environment and hinder the harmonious development of the economy and society.In recent years, with the continuous development of China’s rural economy and rising income levels of rural residents, a series of new issues in the formed amount and structure are emerged in the corresponding rural household waste; industrial products are increasing in the life of rural residents; the composition of rural household waste also tends to urbanization. At the same time, the generated amount of waste in rural areas is also increasing year by year; such problems not only worse the appearance of new rural areas, but also threaten the living environment and health of rural citizens.In the context, the paper attempts to answer the following questions:first, what is the specific situation of the total amount, structure of waste produced in rural area of China? Second, what are the reasons resulting in increasing China’s rural household waste? Third, what is the status quo of China’s fiscal policy for rural household waste? Fourth, how to further strengthen the top-level design of rural garbage policies to fully realize the "double dividend" effect?The main achievements of this study include is as followed: First, Construct theoretical system for fiscal taxation policy about rural domestic rubbish disposal and quantitative analysis the effect of government inputs. Firstly, this paper demonstrates the public good property of rural domestic rubbish disposal from two perspectives, that is, externality and regional spillovers, and also provides basic ground for the government to make use of financial revenue and expenditure to support rural household waste disposal. Secondly, this paper carries out theoretical review from three aspects, which is, factors affecting output of rural household waste, management mode and capital operation mode of disposal of rural household waste, and believes that the fiscal taxation policy about rural household waste disposal shall be constructed via charging and taxation of waste disposal during the process of collection and management of rural household waste. Through simulate the relationship between fiscal input on waste disposal and bio-safety disposal ability in this session, further illustrate the remarkable positive relation of fiscal input on waste disposal, meanwhile, with the marginal effect diminishing, government should make efforts on both urban and rural waste disposal.Second, it is about the rural household waste and its components. This paper estimates the current situation of rural household waste based on the surveys in the four provinces of Hebei, Shandong, Henan and Inner Mongolia. Investigation finds that the amount of waste generated per capital in rural household is about 0.88kg per person per day; the annual total amount of rural living garbage is about 190 million tons, where the eastern region accounts for the largest part, about 2 folds of that in the western region. In terms of the structural constitution, "countryside" garbage in urban life has obvious structural difference between rural household garbage; the proportion of toxic and hazardous and non-recyclable waste is significantly higher than that in rural areas.Third, the main reason about the growth of rural household waste. In recent years, with the rapid development of the rural economy and society, the increase of the rural population, and the problems of rural waste are displayed, which is due to the facts, such as the expansion of rural consumption, growth of rural population, weak environmental awareness, lack of or no fixed funds resource, weak administration intensity and serious phenomenon of rural building without permission, and so on.Fourth, the disposal problems about rural household waste will be demonstrated. The implementation of sorting rural household waste, which has a large quantity and wide dispersion, is an important prerequisite for post-processing work of solving the rural waste. After the analysis the three main waste disposal methods, it is found that, although the traditional disposal technology is relatively mature, there exist obvious limitations and the possibility of secondary pollution, therefore, this paper attempts to introduce several existing international emerging disposal technologies to break through the limitations of conventional techniques. But with the social and economic development, the continuous increase of the rural population, rural residents living scattered, and the lack of stable funding support and other factors are still the leading causes to increase the difficulties in disposing rural household waste.Fifth, with reference to relevant policies of three typical countries (the United States, Japan and India) in rural household waste disposal, this paper starts from perspectives including basic condition of household waste, administrative management mode, legal restraint, household waste classification and disposal, fiscal support method, and Public-Private Partnership scheme to systemize the methods on solving problems related to rural household waste disposal.Sixth, this paper will introduce the status of China’s taxation policies about rural household waste. First of all, with the core idea of scientific guidance and reasonable design, central government has established special funds for rural environmental protection,which including carry out tax preference policies in resource utilization of sewage treatment, waste disposal, construction waste recycling, to encourage all regions to effectively solve those serious issues that harm people’s health, promote the construction of rural ecological demonstration. Then, take Shandong, Zhejiang, Liaoning, Hubei and Ningxia provinces as examples, to explain co-ordinate scheduling at the provincial level, and take Jiaonan of Shangdong province, Neiqiu county of Hebei, Zhuji city of Zhejiang, as well as Tongzhou District of Beijing as the municipal and county-level example to analysis fiscal measures such as reasonable subsidies and the "Trinity" of investment, construction and management measures in lower-provincial level.Seventh, problems of China’s taxation policies about rural household waste will be indicated in this paper. This paper argues that, in terms of financial investment, there exists some problems, such as inadequate investment, significant regional differences, lack of evaluation mechanisms and so on; in the respect of financing, the financing channel is single and the mechanism has not been established to guide financial institutions and market risk fund; regarding to the sorting of rural household waste and compensation mechanism of disposal, taxes and fees about waste disposal have not been levied, the compensation fund, tax refunds and waste recycling compensation mechanisms have not been established, and the scope and administration of tax policies are too weak to motivate rural waste disposal.Eighth, this paper discusses the basic thoughts about solving the problems existing in China’s rural household waste disposal from five aspects. The first one is to adjust measures to local conditions, and find out the suitable solution. Second is to develop the circular economy by use of self-purification ability of environment and peasants’ self-utilization ability. The third is to make overall planning, accurately position the function of individual, group, government, and social institution, and assign the responsibility that each subject shall bear. The fourth one is to promote construction of social rural domestic rubbish disposal mechanism, which is, classifying, reducing, Reutilization, and recycling. The last one is to propose quantitative assessment index for infrastructure, transit system, waste classification, and waste supervision ability, and provide typical cases as specific description. At last, learning from international experience, and based on the special circumstances of China rural areas, to design fiscal policies that further promotes rural household waste disposal. In order to achieve the "social dividend" and "eco-bonus", this paper argues that, first of all, innovative financial system should focus on the construction of ecological civilization, and exploring the introduction of environmental taxes, to raise special fund for rural environmental protection; Second, should improve fiscal transfer payment system, strengthen environmental factors in the institutional design and fiscal transfer payment for environmental protection in rural areas. Then, continue to improve the financial fund management methods, implement the project performance evaluation system, promote county-level financial reimbursement systems of and village-level open-government-affair system for rural environmental protection special fund, and strengthen financial supervision. Fourth, integrate financial resources scattered in various departments, eventually concentrating financial resources on important projects, truly strengthen the capacity of rural environmental protection, rural environmental infrastructure construction, and gradually realize the integration of urban and rural environments. Fifth, with fully consideration on the items, such as category of government procurement, standards of government purchase expense, management framework and performance assessment, to encourage government procurement on rural household waste disposal service and to improve the waste disposal capability, motivate market effect as well as alleviate government fiscal burden. Finally, bring the fundamental role of resource allocation of market mechanism (such as BOT,PPP,BT,TOT and ABS) into play, use the fiscal policy to support the intervention of the market mechanism, and the implementation of market-oriented operation, and implement tax incentives, financial guarantees and other support policies to encourage social forces to participate in governance of household waste in rural areas.Innovation and Deficiency:during the research, there are two innovations. The first one is to specifically point out the three origins of force must be captured in order to effectively exert the function of fiscal policy, and proposes the funding for rural household waste disposal shall be ensured to support self-collection ability of rural household waste, promote local conversion of household waste and carry out classification of source of rural household waste in terms of ensuring effective input of funds. The second one is to propose suggestions from perspective of transfer payment system and integration of financial resources in terms of funds management for fiscal expenditure of rural domestic rubbish disposal.Due to the complexity of government support rural household waste by using fiscal taxation policy, as well as the insufficient of statistical materials, it is inevitable that there exist some deficiencies in this paper, which mainly reflected in two aspects. Firstly, this paper fails to give a comprehensive and deep analysis on funding mechanism of rural household waste disposal, and it makes superficial demonstration on realizing "double dividend" through environmental tax. The second one is that this paper doesn’t give a careful demonstration on how to obtain expenditure performance and control the financial fund during all the stage.