Promoting Green Development in China's New Development Stage Through Tax Reform

Fu Zhihua,Cheng Yu

doi:10.31107/2075-1990-2021-5-44-50

Abstract

Green growth is not only an important way to build ecological civilization and promote economic transformation, but also the core essence of ensuring high-quality economic development in the new development stage. Optimization of tax system design is a key measure to release institutional dividend to promote green development. From the perspective of tax reform, this paper analyzes the current situation and the challenges of tax greening in China in recent years, and puts forward general thoughts and suggestions on how to promote green development at the new stage so as to create a two-wheel drive mechanism of carbon tax and environmental protection tax, lead the structural reform of China’s tax system, continuously improve tax regulation, and construct a green tax system with multiple taxes and means to cooperate with each other and to regulate it comprehensively and effectively.

Highlights

Green development, or green growth is a high-quality development model that takes social economy and ecological environment into consideration
As the largest developing country in the world, China advocates the concept of green development and takes the corresponding road, which is the correct choice in line with the general trend of the times, but is going to have a positive demonstration effect on the international community
The ecological civilization is written into the Constitution; “Clear waters and green mountains are as good as mountains of gold and silver,” is written into the CPC Constitution; the top-level

Summary

INTRODUCTION

Green growth is a high-quality development model that takes social economy and ecological environment into consideration. In September 2020, President Xi Jinping made a commitment to the international community at the general debate of the seventy-fifth session of the United Nations General Assembly, declaring that “China will peak its CO2 emissions by 2030 and strive to achieve carbon neutralization by 2060” (hereinafter referred to as “carbon peak & neutralization”). This reflects China’s position as a responsible country, and demonstrates that China’s green development will face more arduous tasks and severe challenges. From the perspective of tax reform, this paper will analyze the current situation and the challenges of tax greening in China in recent years, and put forward general thoughts and suggestions on how to promote green development at the new development stage, so as to create a two-wheel drive mechanism of carbon tax and environmental protection tax, lead the structural reform of China’s tax system, continuously improve tax regulation, and construct a green tax system with multiple taxes and means to cooperate with each other and to regulate it comprehensively and effectively

Effectiveness of the Progress

Existing Problems

International and Domestic Pressure on Carbon Emission Reduction

Internal Requirements of the New Development Pattern

General Thoughts