China manufacturing tax

Posted by on dic 16, 2011 in Resources, Sustainability Mission | 0 comments

China manufacturing tax

China ponders green manufacturing tax

BEIJING — As the Chinese government struggles to meet several of its own environmental targets to 2015, China’s textile industry could face a new ‘green tax’, which together with higher wages and a slump in exports, puts additional pressure on an industry that is already facing big challenges.

Within the last few weeks, the State Council of China has revealed that it is preparing a new ‘green tax’ for the country’s giant manufacturing sector in a bid to meet its own overall environmental targets and commitments as part of its 12th five-year plan to 2015. And in a bid to boost its chances of hitting these targets, China will now “actively promote reforms in environment related taxes” and “conduct research regarding the collection of an environmental tax’’, a policy note carried by the state-run Xinhua news agency has reported.
The move suggests that the debut of a ‘green tax’ is now officially on the Chinese government’s agenda and that reform will make substantial progress during the country’s 12th Five-Year Plan period, said the official state media organization.

Calls for the debut of an environmental tax have grown considerably in recent years, as China’s explosive development in the manufacturing sector has taken a heavy toll on its resources and environment. “The stress on environmental tax reforms in the guideline comes as China faces a grim situation in meeting its emission control target,” Bai Jingming, an official from the Ministry of Finance said.

In a blueprint of China’s energy-saving programs, China says it aims to cut energy consumption per 10,000 yuan ($1,570) of gross domestic product (GDP) by 16 per cent by 2015, saving 670 million tons of coal equivalent by that time.

The move comes as China’s government also promises to evaluate the environmental performance of listed companies and on November 16 it listed an investigation into the environmental responsibility of more than 2,000 A-share listed companies. The evaluation “will be based on the most prevalent international standards and conducted by third parties,” said government sources, and the results are planned to be released in a report in December 2012, along with a list of the most environment-friendly companies as an example for future industrial development.

Meanwhile, last month, the Vice-chairman of Federal of Hong Kong Industries said that minimum wages in the Pearl River Delta region are likely to go up by 16 – 20% from January 1st 2012.

“This means textile companies here can expect a dramatic rise in labour costs and together with higher raw material prices,” it said, and could result in significant business failures for firms that are “highly labour intensive and produce basic textile products”.

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