The Environmental Protection Law of PRC to Take Effect from Jan 1, 2018
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The Environmental Protection Law of PRC to Take Effect from Jan 1, 2018


After six years of discussions and two revisions, the Environmental Protection Law of the People’s Republic of China (PRC), which will come into effect from Jan 1, 2018, was approved third plenary meeting of the 25th session of the 12th National People's Congress (NPC). 

This Law is formulated for the purpose of protecting and improving ecological environment, cutting emissions of pollutants and advancing the construction of ecological civilization. This Law shall apply to the territory of the People's Republic of China and other sea areas under the jurisdiction of the People's Republic of China.  

Environmental protection

The full text of the Law contains 5 chapters - General Provisions, Tax Basis & Tax Amount Payable, Tax Deduction, Taxation Management, Supplementary Provisions, and includes 28 articles in total. 

The general idea of the Law is to change “fee” to “tax” and to achieve stable transformation from pollution discharge fee system to environmental protection tax system. The bill makes it clear that all companies, public institutions and other bushiness doers that discharge taxable pollutants to the environment directly shall be the taxpayer. Also, Air pollutants, water pollutants, solid waste and noise are clearly defined as taxable.   

According to Wang Jianfan, director of Ministry of Finance of PRC, the implementation of fee-to-tax transformation is an important move for China. It helps to increase taxpayers’ awareness of environmental protection and clarify companies’ liabilities to deal with pollution and reduce emissions. The move also  accelerates the adjustment of economic structure and promote green, circular, and low-carbon development.