China has implemented
a series of environmental tax measures that can be utilized to achieve its dual
carbon goals of reaching peak carbon emissions by 2030 and carbon neutrality by
2060. These include environmental taxes on pollution and resources as well as
tax incentives to encourage environmentally friendly activities. While they
have shown positive effects in reducing pollution and encouraging technological
innovation, they also present significant limitations including regional
disparities, high compliance burdens, and insufficient ex-ante and ex-post
evaluation mechanisms
This article provides
a comprehensive qualitative legal analysis of China’s existing environmental
tax measures. It evaluates both positive impacts and limitations of key
instruments including the environmental protection tax (EPT), the resource tax,
and various environmental tax incentives. The analysis highlights that, while these
tax measures contribute to environmental sustainability, the system remains
fragmented and underdeveloped in several aspects. This article concludes with
policy recommendations focused on establishing a comprehensive legal framework,
improving tax administration, and strengthening legal evaluation mechanisms to
ensure that China’s environmental tax system effectively supports its long-term
ecological and economic objectives.