A Study On The Green Taxation System In China

As the continuous deterioration of global ecosystem, environmental protection and rational use of resources have become pressing issue for all human. Each country takes various measures to protect environment and conserve resources. The introduction of Pigouvian Tax which empowered tax system to take an active role in ecological protection, paved the way for taxation to become a significant environmental protection method all over the world. Nowadays, many countries have established green taxation system conforming to national situation.Though one of the countries enjoys the fastest speed in economic development during the past two decades, China is faced with serious problems, like resource waste, ecological degeneration and pollution. The National 11th Plan points out clearly that we should set up a resource-saving and environment-friendly society in which circular economy is booming, ecosystem is truly protected with strong policy. Certainly, Taxation, as an important macro-regulation method, should exert active effect. However, Chinese taxation system still remains on the stage of unconscious protection of environment. It hasn't devoted expected contribution to environmental protection and rational use of resources.The paper proposes that, Chinese green taxation system should start at the point of realizing circular economy, by promoting rational exploitation, use, and disposal of resources with tax policy, thus finally reaches the aim of environmental protection. More importantly, tax should not only "punish", but also "award" tax-payers. Part of the collected tax should be used to encourage environmental protection and the development of resource-saving technique, clean production, eco-industry-garden, environment-friendly industry and resource-circulation industry, hence improving national green taxation system.