The effectiveness of China's water tax reform shows significant expansion

China decided to implement the expansion of water resources in nine provinces (autonomous regions and municipalities directly under the Central Government) in Beijing, Tianjin, Shanxi, Inner Mongolia, Henan, Shandong, Sichuan, Shaanxi and Ningxia from December 1 this year on the basis of the pilot reform of water resources tax in Hebei Province Tax reform pilot.
So far, the implementation of water resources tax reform pilot in Hebei Province lasted more than a year, how effective? Why did China expand its pilot scope at this time? What is the expected target? In response to these issues, the reporter interviewed relevant government officials and experts and scholars.
Hebei Province reform pilot effect appears
Hebei Province, the first pilot project to implement the reform of water resources tax, is one of the poorest provinces in China with a per capita water resource of only one-seventh of the national average. Both over-exploitation and over-exploitation of groundwater account for the entire country One-third is the most over-exploited area, causing problems such as the decline of groundwater table, land subsidence and ground fissure, threatening the ecological environment and sustainable development. China decided to take the lead in implementing the water resources tax reform pilot program in Hebei since July 1 last year.
Since the implementation of the reform more than a year ago, the operation has been stable and orderly. Li Jiegang, deputy director of Hebei Provincial Department of Finance, said that the regulatory role of water resources tax reform in guiding water conservation has become increasingly apparent. High water-consuming industries, a substantial increase in the cost of using water resources, forcing enterprises to adjust the way of production of water, take the initiative to increase investment in water-saving equipment, improve the comprehensive utilization of water resources, reduce water consumption.
The total water consumption in Hebei Province in 2016 decreased from the previous year. Some areas such as golf courses and other special industries to take water consumption per month than before the reform decreased by more than 30%. In the meantime, the pilot reform overall did not increase the water consumption for normal production and domestic use by general industrial and commercial enterprises and residents.
Wang Jianfan, director of the Tax Administration Department of the Chinese Ministry of Finance, believes that the reform pilot program in Hebei Province has achieved remarkable results, achieved the expected goals and possessed the foundation and conditions for expanding the reform pilot.