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On 6 February 2018, China’s MEP released the Comprehensive Catalogue for Environmental Protection (2017 edition). The catalogue includes two categories: high- polluting or environmentally-hazardous products (885 items) and environmental protection facilities (72 items).
The list of high-polluting or environmentally-hazardous products contains the following: 50 more products generating a large amount of pollutants during production, such as sulfur dioxide, nitrogen oxides, chemical oxygen demand, and ammonia nitrogen; 40 more products generating a large volume of VOCs; 200 more products involving heavy metal pollution; and 570 more environmentally-hazardous products.
China’s MEP has been developing the catalogue since 2007. The catalogue aims to protect the environment through taxation and through regulation of chemical trade and financing. The chief mechanism is control of high-polluting or environmentally-hazardous products many of which have been banned from import tax rebate and processing trade.
In September 2017, under the auspices of the State Council, China’s MEP along with the Ministry of Finance published the Income Tax Preference Catalogue for Environmental Protecting facilities (2017 edition). If an enterprise purchase and put one of the listed facilities in use, 10% of the facility price could be deducted from income tax payable for the current tax year. The deduction will be valid for 5 tax years.
