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Pollution tax will not be levied

(chinadaily.com.cn)
Updated: 2009-09-08 10:28

An anonymous official from the Ministry of Environmental Protection said it is unlikely to levy an additional pollution tax on vehicles when a fuel tax already exists, the Shanghai Securities News reported today.

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Part of the income collected from the fuel tax will be used for environmental protection, the official explained.

On September 6, Ren Hongyan, director of the Department of Pollution Control of the Ministry of Environmental Protection, said because the country's Income Tax Law is being revised, a pollution tax on vehicles is likely to be included in the new income tax law.

Ren later told the Shanghai Securities News that this is a misunderstanding.

It is impossible to levy a pollution tax in addition to fuel tax, he said, explaining that he only meant to suggest the Ministry of Finance and the State Administration of Taxation to use part of the income from the fuel tax for environmental protection purposes.