A Study Of Establishing The System Of Environmental Taxation In China

In recent years, with the high growth of China’s economy, environmental protection isincreasingly becoming a problem which cannot be ignored in the process of economicdevelopment. Based on the institutional economics and welfare economics theory, some westerncountries enhanced the research of the role of tax policy played on environmental protectionsince the late1980s, which caused the green revolution of environmental tax system.At present, some countries are increasingly adopting environmental taxes, green taxes andother specific taxes to preserve the environment and ecological balance. The practice of theenvironmental tax system proved that the environmental tax system has the dual potentials inimproving of the environmental quality and obtaining the economic net benefits, and it’s aneffective ways to solve the contradiction between economy and environment.With China’s rapid economic development, the contradictions of economic developmentand environment are becoming more prominent. However, in theory, China’s environmental taxsystem theory is not deep or thorough enough, and lack of systematic research; in practice, itsimpact is still limited and without the real environmental tax. Therefore, how to use theeconomic leverage of the tax to classify some social environmental projects into the tax policyadjustment areas and to realize the economic sustainable development, have become animportant topic of tax reform.Based on the environmental economic theory, this paper starts with how the greatest role oftax played in environmental protection, analysis China’s current environmental tax system andsummarizes the lack and experience of foreign environmental tax system, besides, combinedwith the actual situation and the existing environmental tax system, the basic idea of the Chinacharacteristics environmental tax system is addressed.