China to adjust resource and energy tax policies in 2nd half

By Shangguan Zhoudong (
Updated: 2007-07-25 15:58

China will continue to adjust resource and energy tax policies in the second half of this year, in a bid to increase the cost of polluting enterprises and encourage energy efficient production, according to the Ministry of Finance, the Shanghai Securities News reported today.

The ministry will implement incentive fiscal policies to help save energy, reduce emissions and protect the environment.

The policies include taxation, funds, subsidies, and transfer payments, according to Zhu Guangyao, assistant finance minister.

The ministry will consider canceling or reducing tax rebates on exports of energy-intensive, high-polluting products and resources, Zhu said.

Fiscal and taxation departments will improve preferential taxation policies toward recycling and the purchase of energy-efficient equipment.

The development of new energies such as bioenergy, geothermal energy, and solar power, and environmentally friendly buildings will enjoy tax incentives.

According to the ministry, China's top 10 energy-saving projects and the closure of polluting factories in poor regions would receive support.

China reduced its energy consumption per unit of gross domestic product by 1.33 percent in 2006 - far from its goal of 4 percent.

All provinces and regions except for Beijing missed their energy saving targets last year.

The targets are part of efforts to minimize carbon emissions and rein in the country's soaring demand for imported resources.

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