Research On Sewage Charges Reform Under The Environmental Tax Goals

After 30 years of the reform and opening up, China’s economy has been considerable level of development. In 2014, China’s GDP topped $10 trillion, the second country of the “GDP10 trillion dollar club”. However, behind the great economic achievements, the country also paid a heavy environmental cost. In 2013, China had published “China’s environmental status reports”. It showed that only three cities air quality standards of the 74 cities monitored by. The ratio of the city exceeded reached staggering 95.9 percent. In addition, the data showed that 59.6% of the groundwater quality is poorer. And in 473 cities of monitoring precipitation, the proportion of acid rain in the city have reached 44.4%, the acid rain area accounted for 10.6% of the land area. These figures can be seen by our current environmental situation is not optimistic and it is worth attention.In the history of the Western countries, we find that they have also experienced serious environmental problems arising from economic development and paid a very heavy price. For example, London smog events happened in 1952 and Los Angeles photochemical smog events happened in the early 1940 s. At the same time we also see the efforts of Western countries for environmental management and harvesting made remarkable achievements. Experience of Western countries tax means to manage environment has provided valuable experience in building green tax of our country. Today, China is undergoing economic transition. The high-energy, extensive mode of economic development cannot be sustained, and the green economy is the trend of modern society. It’s the time to use the taxation to protect the environment. In this context, the reform of sewage charges is worth attention and studying.This paper discusses issues related to our sewage tax reform. First, in theory, I elaborated the theory of externalities, public goods and the relationship of taxes and fees. These theories are the theoretical foundation for Discussion below. Secondly, the paper uses statistical methods to analyze the current situation of visual pollution emissions and introduces the charging system of sewage charges in this context. Thirdly the paper analyzes the relationship between economic growth and sewage charges by empirical analysis. We found there is a significant positive effect of stimulus in sewage charges on economic growth which is why sewage charges standardization reform is particularly important. Finally, the paper describes the necessity of sewage tax reform and proposes the policy recommendations based on the foregoing summary.