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Business / Policy Watch

New measures mulled for greener economy

By Zheng Yangpeng (chinadaily.com.cn) Updated: 2012-05-30 13:59

China is mulling whether to impose a consumption tax on "high-polluting, high resource consuming" products, according to officials from the Ministry of Environment Protection.

Citing an unnamed official, Economic Information, a newspaper affiliated with Xinhua News Agency, reported the ministry is planning to implement eight measures during the 12th Five-Year Plan period (2011-15) to promote a greener economy.

These measures, besides a consumption tax, include raising the current pollution fee standard and issuing environment protection bonds.

The official said the government is considering expanding the number of pilot cities that have conducted "green" tax reform.

These reforms include replacing the former environment fee with an environment tax and imposing a resource consumption tax.

Green enterprises should be encouraged through various tax reduction measures, the official said.

Banks should also adopt a green credit policy to give favorable loans to green enterprises and limit credit access to high-polluting and high resource consuming enterprises, according to the official.

zhengyangpeng@chinadaily.com.cn

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