The pollutant discharge fee that has been collected in China since 1979 is to be replaced by an environmental protection tax on Jan 1.

The Environmental Protection Tax Law, which was approved at the National People's Congress Standing Committee meeting on Dec 25, 2016, is China's first law on charging a green tax and aims to put an end to some local governments exempting enterprises which are big contributors to the local economy, and force companies to upgrade their technology and shift to cleaner production.

Air pollutants, water pollutants, solid waste and noise will all be taxable. Individuals are not subject to the tax and only enterprises and public institutions that discharge listed pollutants directly into the environment will need to pay the tax.

Local authorities can set specific standards for the green tax within the range determined by the Environmental Protection Tax Law according to the local situation. It is reported that about 30 provinces, municipal cities and autonomous regions have released their local environment tax standards in terms of air pollution and water pollution.