Research Of Tax Policy On Promoting The Development Of China’s Environmental Protection Industry

The environmental problems of our country have been becoming more serious in recent years. For example, these years the haze has appeared in more and more major cities.The haze not only hinders the cities’ traffic, but also poses a serious threat on people’s health. Moreover, with the sustained and rapid development of economy and the increasing levels of per capita income, energy demand will continue to grow. As results, the stocks of energy resources will reduce rapidly and the emissions of CO2, SO2 etc. will continue to increase. And thus, China needs to transform the mode of economic development to achieve sustainable development of resources, environment and economy.After many world-shocked environmental pollution incidents took place in the developed countries before the 1960s, environmental protection industry which aims to solve the problems of resource and environment started arose. In recent 50 years, the developed countries have made a lot of tax policies to support the development of environmental protection industry and have achieved great success. In the developed countries,the output value of environmental protection industry accounted for 10%-20% of GDP and its growth rate is often higher than the growth rate of GDP. Therefore, many countries in the world have viewed environmental protection industry as a new economic growth point and have been competing for the leading position of international environmental protection market and technology of environmental protection. According to the development practice of environmental protection industry in the developed countries, it is concluded that environmental protection industry has great potentiality which can promote the construction of resource-saving and environment-friendly society, the transformation of economic development mode and the adjustment of industrial structure,etc. Because of the late start, the lagged technology and other reasons, it’s difficult for environmental protection industry in China to bear the responsibility of protecting the environment, saving resources and driving economic growth. And thus, China should perfect tax policies to promote environmental protection industry to develop faster.With the problems of resources and environment becoming increasingly prominent, many domestic scholars have been researching on tax policies of resources and environment and had put forward a series of suggestions to perfect them. However, most of domestic scholars mainly research on environmental protection tax, resource tax, consumption tax and other environmental taxation. Only a few scholars have realize that environmental protection industry is of much importance to solving the problems of resources and environment and to developing economy.And then only a few put forward a series of suggestions to the incentive and restrictive tax policies of environmental protection industries’ different fields. This paper starts with the basic economic theories which can explain the reason why environmental protection industry needs tax policies to adjust. Then, this paper analyzes the problems of tax policies of environmental protection industry in our country. And then, on the basis of the developed countries’ experience, this paper puts forward some suggestions for tax policies of environmental protection industry. Therefore, this paper is not of important theoretical significance to promote the application of externality theory and public goods theory, but also is of important theoretical significance to the improvement of taxation system of environmental protection industry. In addition, because this paper arises some suggestions for environmental protection tax, consumption tax and resources tax, it is also useful for the new round reform of tax system.This paper consists of the following five parts:Part Ⅰ:Introduction.The part firstly gives the background and significance of the research, which use data to illustrate that environmental protection industries’ development in China is of practical significance to solving the problems of resources and environment and to accelerating economic development. Then, the part briefly describes the literatures, research methods and contents and the innovations and defects of this paper.Part Ⅱ:Analysis of the tax impact on environmental protection industry. Firstly,the part describes the basic economic theories such as externality theory and theory of public goods,etc.Then, on this basis, the part uses economic theories which includes the law of supply and demand,income effect and substitution effect, etc. to analyze how the incentive and restrictive tax policies act on environmental protection industry.PartⅢ:The present situation and problems of tax policies of environmental protection industry in China.The part firstly describes the tax policies of environmental protection industries’ four fields which are development and protection of natural resources, comprehensive. utilization of resources, environmental protection products, environmental protection services. Then, the part points out the problems of them. Although the strength of China’s tax support for environmental protection industry is increasing in recent years, there are still many problems in China’s tax policies to encourage the development of environmental protection industry.Not only the tax policies are scarce, relatively scattered and lack of systematicness and pertinence, but also its adjustment range is narrow.PartⅣ:The present situation and enlightenment of tax policies of environmental protection industry in some countries. Firstly,the part briefly describes American, Japanese and Germany tax policies’ present situation of four fields which are development and protection of natural resources, comprehensive utilization of resources, environmental protection products, environmental protection services. Secondly, the part sums up these typical countries’ successful experience and get the following enlightenments:making favorable tax policies systematic and targeted, increasing the diversity of favorable tax policies, expanding the collection scope of environmental taxation, rightly orientating the functions of environmental taxation and clearly regulating the use and attribution of revenue of environmental taxation.Par Ⅴ.Proposals of tax policies of environmental protection industry. According to the problems of tax policies of environmental protection industry,the part offers some suggestions to improve and perfect the tax policies of development and protection of natural resources, comprehensive utilization of resources, environmental protection products. To make full use of the positive effect of tax policies in environmental protection industries’ various fields and links, the suggestions emphasize that the tax policies of environmental protection industry should not only be more systemic, targeted and diverse, but also pay more attention to the coordination of the incentive and restrictive tax policies.