CCM: Proliferation of environmental policies, heavier burden on sweetener enterprises

Publish time: 12th July, 2016      Source: CCM
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   According to the 2016 legislation work plan released by the Standing Committee of the National People's Congress, the Environmental Protection Tax Law of the People's Republic of China is to be examined in June this year. If it goes on smoothly, the law will be issued within this year.



                                                                             Source: Baidu


  This signals that the environmental protection charge (= pollutant emission charge) system will be substituted for environmental protection tax, which is of strong enforceability. Accordingly, the tax rate will be raised based on economic conditions.


  •       Tax on   air/ water pollutants: USD0.18 (RMB1.2) and USD0.21 (RMB1.4) based on   every 1 kg of pollutant equivalence     
  •       Tax on   solid wastes: varied from USD0.76/t (RMB5/t) to USD4.55/t (RMB30/t)     

Notably, specific tax rates will be regulated by local governments.

In addition, the levitation and administration pattern will be modified, from "self-tax collection and self-administration' by environmental protection departments only to "applications by enterprises, and tax collection by taxation departments' to achieve "joint administration and information sharing'.

China's tax collection and administration pattern based on revised environmental protection tax law, 2016






          Application by enterprise         


          In regard to applications made for pollutant category and emissions by key target taxpayers during pollutant emission monitoring:         


          Taxation department in charge to submit application documents to corresponding environmental protection department for examination and approval within 5 days from the due tax date;         


          Environmental protection department in charge to offer opinions after examination to corresponding taxation department within 30 days from the date it receives the said documents.              


          Tax collection by taxation department         


          Administration to be carried out based on classifications, namely key target taxpayers and non-key taxpayers during pollutant emission monitoring;         


          If pollutant emission concentration > national or local standards, OR, pollutant emission > specified total emission: tax to be doubled based on local tax standard and to be collected         


          If pollutant emission concentration > national or local standards, AND, pollutant emission > specified total emission: tax to be tripled based on local tax standard and to be collected         


          Joint administration         


          Taxation department could request environmental protection department to examine pollutant emissions made by taxpayers, if it finds unrealistic data, tax dodging, etc.              


          Information sharing         


          Taxation and environmental protection departments to establish information sharing system         


  Source: Ministry of Environmental Protection of the People's Republic of China




  In June 2016, the Ministry of Environmental Protection of the People's Republic of China (MEP) solicited public opinions on the Water Pollution Prevention and Control Law of the People's Republic of China, which is expected to have a full-scale combination with the Environmental Protection Law of the People's Republic of China, and meanwhile to be a complement to the environmental protection tax law.


  Accordingly, it specifies the polluting units' responsibilities: to dispose pollutants based on certificates, to carry out self-monitoring and keep monitoring records in accordance with laws and regulations, to periodically make reports and unveil details, to take measures to effectively prevent and control water pollution, and to take responsibilities for doing harms. Specifically, it regulates that no pollutant emission charges will be collected if the environmental protection tax is levied.

On 1 Jan., 2015, the revised environmental protection law was officially implemented. From then on, the Chinese government successively issued laws and regulations related to environmental protection. This caused certain market fluctuations.  


  •       Feb.   2015 - Water Pollution Prevention Action Plan ("Water Ten   Plan") issued, to carry out strong supervision on sewage treatment,   industrial water discharge, emission control, etc., and to establish   strict accountability system     


  •       Dec.   2015 - Measures to Assess and Cope with Environmental Monitoring Data   Deceits formulated (carried out on 1 Jan., 2016), in accordance with   the environmental protection law and the Ecological Monitoring Network   Construction Proposal, to cope with environmental monitoring data deceits     


  During the production of sweeteners, wastewater of high salt/ organics contents will be produced at large quantities, which causes great treatment difficulties. For instance, pollutants will be brought from producing starch sugar (processes including enzymolysis, liquefaction, saccharification and decolouring), comprehensive CODcr up to 6,500 mg/L.


  However, CODcr in wastewater from main wastewater outlets of enterprises should be 100 mg/L, for the wastewater discharge, according to the Standard for Water Pollutant Emission in Starch Sugar Industry (GB25461-2010).


  For a long period, many enterprises choose to "pay for pollutant emissions instead of improving pollutant treatment', due to the high costs for process development and pollutant treatment facilities, and the not strictly enforced laws.


  The launch of environmental protection tax will force enterprises to pay higher for pollutant emissions, which will then push them to cope with pollutants.


  Accordingly, in order to treat with wastewater, waste gas and solid wastes during the sucralose production, JK Sucralose Inc. has for years constructing and improving related facilities, investment at over USD9.11 million (RMB60 million) in total. In addition, Anhui Jinhe Industrial Co., Ltd. to date has input USD1.52 million (RMB10 million) in its wastewater treatment project.


  This article comes from Sweeteners China News 1606, CCM




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  Tag: sweeteners     environmental protection