Research On Tax Preference For Recycling Use Of The Three Wastes

The environmental problem in china is extremely severe. In November 2012, the report of the eighteenth national congress of the communist party proposed to promote the resource reservation comprehensively, to develop the circular economy, and to advance the reduction, recycling and resource recovery in the process of production, circulation and consumption. On 13 March 2014, during the conference of the Second Session of the Twelfth National People’s Congress, Premier Li keqiang stressed the declaration of war on pollution like war on poverty in the government work report, also the development of cleaner production, green low carbon technology and circular economy. Hence, the development of circular economy is the critical path to resolve the conflicts between environment and economy. Based on the experience of developed countries, the development of circular economy must depend on relevant law. Tax law, the important lever of economic operation of the government, has a significant impact on the development of economy and the adjustment of the industrial structure. As the important part the tax law, tax preference directly impact the development of economy in respect of preferential range, preferential way and preferential margin, etc. The tax preference and the encouragement of circular economy can make the most of industrial three wastes to realize to recycling use. However the environmental tax on environment protection and circular economy is currently absent in China, the Chinese government only regulates a series of green taxation preferences on comprehensively utilization of resources and energy saving and emission reduction. In order to courage the resource utilization of the industrial three wastes by tax preference, this article demonstrates the reality basis and theoretical basis of the reasonable existence of tax preference of the recycling using of the three wastes in the first place. Then the author tries to find the responsive law based on the current tax preference of resource utilization of three wastes. At last, the author tries to advice on the perfection of the foresaid legal problem.Part one, the analysis of the reality basis of tax preference on recycling using of the industrial three wastes in China. In this part, the author tries to demonstrate the reality meaning of resource utilization of the industrial three wastes with the entry point of the environment protection and circular economy, also with the example of current severe environmental problem and realistic difficulties of circular economy. Moreover the author analyses the possibilities of the existence of recycling using of the industrial three wastes on the basis of foreign tax preference experience and domestic practice. Part two, the analysis of the theoretical basis of tax preference on resource utilization of the industrial three wastes in China. The theoretical basis of economics is to reduce the tax burden on the recycling enterprise in order to internalize the process of the waste recycling. The theoretical basis of science of tax law is to balance the profit during the process of waste recycling in order to realize the goal of the fairness of tax law. Part three, the comb of tax preference on resource utilization of the industrial three wastes in China. There is currently absent of tax preference on resource utilization of the industrial three wastes in China, hence the possible way to solve this problem would be combing the relevant regulations on tax preference on comprehensive resource utilization through the law on corporate income tax and value-added tax law. Part four, to find out the existing problem on the tax preference on the basis of the foresaid combing of tax preference on resource utilization of the industrial three wastes in China. The problems shall include low level of legislation, lack of systemic preferential scope and the single form of preference. Part five, the advice on the perfection of tax preference on resource utilization of the industrial three wastes in China. The perfection advice, the emphasis of this article, will focus on the existing problem on tax preference in order to provide thoughtful suggestion as follows: 1. Persisting in the legal principle to legalize and justify the tax preference; 2. The perfection of the legislative system of the tax preference; 3. Increasing the kinds of form of tax preference including the permission to speed up the depreciation of the environment protection equipment and the carry-over of the environment protection enterprise; 4. Increasing the kinds of tax preference, including the preference on housing property tax and urban maintenance and construction tax; 5. Perfection of relevant supporting facilities, including the strengthening of the application of tax preference clause during collection and management, the establishment of analysis system of tax preference and the cooperation with other policy means.