Implementation Measures for the Pilot Program of Levying Environmental Protection Tax on Volatile Organic Compounds
Article 1: In order to continuously improve air quality, reduce volatile organic compound emissions, improve the green tax system, and promote ecological civilization construction, in accordance with the provisions of the Environmental Protection Tax Law of the People's Republic of China and other relevant environmental protection laws and regulations, this method is formulated.
Article 2: Within the territory of the People's Republic of China and in other sea areas under its jurisdiction, enterprises, institutions, and other producers and operators that directly discharge volatile organic compounds not listed in the "Taxable Pollutants and Equivalent Value Table" attached to the Environmental Protection Tax Law of the People's Republic of China into the environment, are taxpayers of the Volatile Organic Compound Environmental Protection Tax. They shall pay the Volatile Organic Compound Environmental Protection Tax in accordance with the provisions of this method.
Article 3: The following enterprises, institutions, and other producers and operators are temporarily exempt from the Volatile Organic Compound Environmental Protection Tax:
(1) Those not subject to pollution permit management;
(2) Those included in pollution permit management but whose pollution permits do not indicate the discharge of volatile organic compounds.
Article 4: In accordance with the principle of "pilot first, step-by-step implementation, and steady progress", the pilot work for the collection of the Volatile Organic Compound Environmental Protection Tax shall be advanced in an orderly manner.
The first batch of industries included in the collection pilot scope are: Printing Industry; Petroleum, Coal and Other Fuel Processing Industry; Chemical Raw Materials and Chemical Products Manufacturing Industry; Pharmaceutical Manufacturing Industry; Iron Smelting and Steel Industry; General Equipment Manufacturing Industry; Special Equipment Manufacturing Industry; Automobile Manufacturing Industry.
The above industries shall be determined according to the national classification of economic and social activities. Based on the pilot situation, other industries involving the control of volatile organic compounds shall be gradually included in the collection pilot scope.
Article 5: The Volatile Organic Compound refers to organic compounds that participate in atmospheric photochemical reactions, or organic compounds determined by national regulations. The Volatile Organic Compound Environmental Protection Tax is collected as a separate type of air pollutant pollution tax, and is not subject to the tax ranking stipulated in Article 9, Paragraph 1 of the Environmental Protection Tax Law of the People's Republic of China.
Article 6: The tax amount of the Volatile Organic Compound Environmental Protection Tax ranges from 8 yuan to 12 yuan per pollution equivalent.
The specific applicable tax amount of the Volatile Organic Compound Environmental Protection Tax shall be determined by the provincial, autonomous regional, and municipal people's governments in accordance with the requirements of the national atmospheric environmental carrying capacity, the current status of volatile organic compound emissions, and the economic and ecological development goals of the region, within the tax amount range specified in Article 5.
Article 7: The taxable amount of the Volatile Organic Compound Environmental Protection Tax is the product of the pollution equivalent number and the specific applicable tax amount.
Article 8: The pollution equivalent number of volatile organic compounds is calculated by dividing the taxable emission of volatile organic compounds by the pollution equivalent value.
The pollution equivalent value of volatile organic compounds is 0.95 kilograms.
Article 9: The emission volume of volatile organic compounds is determined by the sum of the emission source items of volatile organic compounds as specified in the "Emission Source Item List of Volatile Organic Compounds" attached to this method.
The taxable emission volume of volatile organic compounds is the balance after deducting the emission volumes of 18 types of volatile organic compounds (such as benzene, toluene, xylene, formaldehyde, acetaldehyde, acrylonitrile, methanol, phenols, benzeneamines, chlorobenzene, nitrobenzene, propenonitrile, vinyl chloride, trimethylamine, methyl mercaptan, methyl thioether, dimethyl disulfide, styrene) from the emission volume specified in the previous paragraph.
The emission volumes of the 18 types of volatile organic compounds shall be calculated and determined in accordance with the provisions of Article 10 of the Environmental Protection Tax Law of the People's Republic of China.
Article 10: The emission volume of volatile organic compounds is calculated by the following methods:
(1) For emission source items of volatile organic compounds from the use of volatile organic compound-containing raw materials and auxiliary materials, calculate by the material balance method;
(2) For emission source items of volatile organic compounds from the dynamic and static sealing points of equipment, calculate by the monitoring method, the emission coefficient method, etc.
(3) For other emission sources, the calculation is based on the emission and pollution coefficient method.
The specific calculation method for the emission amounts of each emission source item shall be stipulated by the Ministry of Ecology and Environment in conjunction with the Ministry of Finance and the State Taxation Administration.
Article 11: For taxpayers rated by the ecological environment department as having A-level atmospheric environmental performance in key national industries, the environmental protection tax for volatile organic compounds shall be levied at a reduced rate of 50%. For taxpayers rated as having B-level atmospheric environmental performance in key national industries by the ecological environment department, the environmental protection tax for volatile organic compounds shall be levied at a reduced rate of 75%.
If a taxpayer has the circumstances stipulated in Article 17 of this regulation, they shall not enjoy the tax benefits mentioned in the preceding paragraph for the current period.
The environmental protection tax for volatile organic compounds calculated by taxpayers in accordance with this regulation shall not be subject to tax benefits based on the emission concentration value.
Article 12: The environmental protection tax for volatile organic compounds shall be collected and managed by the tax authorities in accordance with the provisions of the "Tax Collection and Administration Law of the People's Republic of China" and this regulation.
The ecological environment department shall manage the discharge of volatile organic compounds in accordance with relevant environmental protection laws and regulations and the provisions of this regulation.
Article 13: The time of tax liability occurrence is the day when the taxpayer discharges volatile organic compounds.
Article 14: Taxpayers shall declare and pay the environmental protection tax for volatile organic compounds to the tax authorities at the location of the discharge of volatile organic compounds.
Article 15: The environmental protection tax for volatile organic compounds shall be calculated on a quarterly basis and declared and paid. For equipment dynamic and static sealing point emission source items, the emission source items can be declared and paid on an annual basis.
If taxpayers declare and pay the environmental protection tax for volatile organic compounds on a quarterly basis, they shall complete the tax declaration and pay the tax within 15 days after the end of the quarter. If taxpayers declare and pay the environmental protection tax for volatile organic compounds on an annual basis, they shall complete the tax declaration and pay the tax within 15 days after the end of the first quarter of the following year.
Article 16: Taxpayers shall truthfully declare the emission source items, emission amounts of volatile organic compounds, and other tax-related materials required by the tax authorities.
Article 17: If a taxpayer has any of the following circumstances, the emission amount for the current period shall be calculated in accordance with this clause. Among them, the emission source items including volatile organic compound raw materials and auxiliary materials usage, production process discharge, wastewater collection and dispersion discharge, volatile organic liquid storage discharge, and volatile organic liquid loading discharge, shall take the production and pollution coefficient method as the emission amount for the current period; the equipment dynamic and static sealing point emission source items, open circulating water discharge source items, and flare discharge source items shall take 1.5 times the result of the production and pollution coefficient method as the emission amount for the current period:
(1) Underreporting of emission source items;
(2) The proportion of the volatile organic compound emissions from a single emission source item that is underreported exceeds 40 percent;
(3) Tampering with or forging monitoring data, volatile organic compound content of raw materials and auxiliary materials, leakage detection and repair data, etc., used for calculating the taxable emissions of volatile organic compounds.
If taxpayers falsely deduct the emissions of 18 types of volatile organic compound single substances as stipulated in Article 9 of this regulation by tampering with or forging monitoring data, the emission amount for the falsely deducted period shall be calculated as 0.5 times the first real and effective monitoring data from the date of the first real violation, and deducted.
Article 18: The State Taxation Administration and the Ministry of Ecology and Environment shall strengthen work coordination, based on the characteristics of volatile organic compounds and prevention and control requirements, to promote the optimization of pollutant discharge information reporting methods, and facilitate taxpayers to complete tax declaration through the electronic tax bureau.
Tax authorities and ecological environment departments shall provide free guidance, training and consultation services to taxpayers related to the payment of the environmental protection tax for volatile organic compounds.
The tax authorities and the environmental protection department should promptly share relevant tax-related information on volatile organic compounds and carry out joint supervision and law enforcement. They should severely crack down on illegal acts such as tax evasion and fraud, and publicly expose typical cases in a timely manner.
Article 19: The environmental protection department should regularly provide the tax authorities with information on taxpayers' pollutant discharge permits, emission source items, atmospheric environmental performance grades, and environmental protection administrative penalties, etc.
Article 20: The tax authorities should regularly provide the environmental protection department with information on taxpayers' environmental protection tax declaration, tax reduction amounts, and risk points related to volatile organic compounds.
Article 21: If the environmental protection department discovers that there are problems with the basic information of the taxpayer's emission sources, the operation of the treatment facilities, the use of raw materials, the emission coefficient or material balance formula application, etc., which may lead to incorrect calculation of taxable amounts, it should notify the tax authorities within 30 days from the date of discovery.
If the tax authorities find that the taxpayer's tax declaration data and materials are abnormal, or if the information related to the calculation of emissions cannot be accurately determined, they can request the environmental protection department to conduct a review. The environmental protection department should issue a review opinion within 30 days from the date of receiving the tax authorities' data and materials. The tax authorities should adjust the taxpayer's taxable amount based on the review data provided by the environmental protection department.
Article 22: If taxpayers and tax authorities, environmental protection departments and their staff violate the provisions of this method, they shall be held legally responsible in accordance with the "Tax Collection and Administration Law of the People's Republic of China" and relevant environmental protection laws and regulations.
Article 23: The relevant policies during the pilot period shall be determined by the Ministry of Finance in consultation with the State Taxation Administration, the Ministry of Ecology and Environment and other departments.
Article 24: This method shall come into effect on January 1, 2027.
Attachment: List of Volatile Organic Compound Emission Sources
Attachment
List of Volatile Organic Compound Emission Sources
I. Emission Source Items from the Use of Volatile Organic Compound Raw Materials
This refers to the emissions of volatile organic compounds during the processes of mixing and blending (mixing, stirring, etc.) of volatile organic compound raw materials, coating (spraying, dip-coating, spray-painting, roller-coating, brushing, coating application, etc.), printing (flat plate, relief plate, intaglio plate, screen plate, etc.), bonding (applying glue, hot pressing, laminating, bonding, etc.), dyeing (dyeing, printing, setting, etc.), drying (drying, air-drying, air-drying, etc.), cleaning (immersion washing, spray washing, spray-washing, rinsing, scrubbing, etc.) and other uses.
Volatile organic compound raw materials refer to materials with a volatile organic compound content of 10% or more. They mainly include paints, inks, adhesives, cleaning agents, diluents, water-based developer, varnish, finishing agents, coating agents, etc. (the same below).
II. Emission Source Items from Production Processes
This refers to the volatile organic compound emissions from process units other than the emission source items from the use of volatile organic compound raw materials.
III. Emission Source Items from Evaporation of Volatile Organic Liquid during Collection, Storage and Treatment
This refers to the volatile organic compound emissions from volatile organic liquid during collection, storage and treatment.
IV. Emission Source Items from Storage of Volatile Organic Liquids
This refers to the volatile organic compound emissions from fixed-top tanks (vertical and horizontal) and floating-top tanks (inner floating top and outer floating top) with a single tank volume of 20 cubic meters or more, caused by the static breathing loss and working loss of the liquid.
Volatile organic liquids refer to organic liquids with a volatile organic compound content of 10% or more (the same below).
V. Emission Source Items from Loading and Sub-loading of Volatile Organic Liquids
This refers to the volatile organic compound emissions during the loading and sub-loading of volatile organic liquids.
VI. Emission Source Items from Dynamic and Static Sealing Points of Equipment
This refers to the volatile organic compound emissions from the leakage of equipment and pipeline components during the entire industrial production process, applicable to pollution discharge units with more than or equal to 2000 dynamic and static sealing points. The types of equipment and pipeline components include pumps, compressors (shaft seals), mixers (shaft seals), valves, pressure relief equipment (safety valves), sampling connection systems, opening valves or opening pipelines, flanges, connection components (threaded connections), other sealing equipment, etc.
VII. Emission Source Items from Open Circulating Water
This refers to the emissions of volatile organic compounds released into the atmosphere through flash evaporation, steam extraction and wind blowing in the circulating cooling water facilities of pollutants.
VIII. Emission Source Items from Torch Discharge
This refers to the volatile organic compound emissions from the exhaust gases of volatile organic compounds through the torch system combustion.
