Chemical water will face the challenge of “tax reform”

The latest results of the water resources evaluation issued by the Ministry of Water Resources on the 19th showed that, according to the current normal needs and the non-overexploitation of groundwater, the total annual water shortage in the normal year is nearly 40 billion cubic meters, and the total amount of sewage discharged continues to grow. As a result, some experts from the China Institute of Water Resources and Hydropower Research have once again raised concerns about the appeal for the collection of water resource taxes.

Chen Lei, Minister of Water Resources, said that the current contradiction between water supply and demand in China is still outstanding. Among them, the Yellow River, Huaihe, Haihe and Liaohe regions were the most significant, and their total resources decreased by 12%. At the same time, the total amount of sewage discharged in the country continues to grow. The excessive use of chemical fertilizers and pesticides in agricultural production has polluted the water environment. Half of the monitored lakes are eutrophic. Local water ecosystem imbalances. Water consumption in some areas has far exceeded the amount of water resources available, and some rivers have intermittent or permanent interruptions. He said that in the future, effective measures will be adopted to restrict the excessive and disorderly development of water resources and effectively strengthen the protection of water resources and ecological governance.

In view of the fact that the current use of water resources in China is still a form of toll, experts from the China Institute of Water Resources and Hydropower Research and many other organizations have proposed to introduce water resources tax as soon as possible. These experts believe that since water resources are owned by the state, users of water resources should compensate the owners of the resources. The levy of the water resource tax can promote the rationalization of the industrial structure, make the benefits of the development and utilization of water resources fair, and at the same time regulate the efficiency of resource allocation.

It is understood that China has imposed a resource tax on mineral products and salt. With the deepening of energy-saving and emission-reduction, further reforms of the coal resources tax are in the pipeline. The starting point was determined as the change of the collection method from "measured quantity" to "ad valorem". The first is to change the apparently low resource tax rate, and the second is to change the apparently unreasonable method of taxation. Experts believe that the collection of water resources tax can learn from this reform.

The amount of water used in the petroleum and chemical industries and the amount of sewage discharged are ranked first in the industry. The amount of discharged wastewater accounts for more than 20% of the total industrial wastewater discharge in the country. The annual water consumption of large-scale coal chemical projects is usually as high as tens of millions of cubic meters, which is equivalent to the amount of water resources occupied by more than 100,000 people in some areas or the amount of water resources held in more than 100 square kilometers of land area. In particular, the Yellow River, Huaihe, Haihe and Liaohe regions, where the contradiction between water supply and demand is the most prominent, are also the areas where oil and chemical companies are most concentrated. If water is used to “pay taxes,” production costs for oil and chemical companies will increase.

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