Chinese Tax Policy and the Promotion of Agricultural Cooperatives and Environmental Protection

(2016) 31 Australian Tax Forum

21 Pages Posted: 11 May 2017

See all articles by Bill Butcher

Bill Butcher

UNSW Business School

Yan Xu

University of New South Wales

Multiple version iconThere are 2 versions of this paper

Date Written: 2016

Abstract

China’s remarkable economic growth over the past 35 years has come at a cost, not least being a significant deterioration in its natural environment. Chinese authorities have responded to this challenge with a range of measures including the imposition of specifically targeted environmental imposts on business enterprises. In addition, the Chinese central government recently introduced a broader draft environmental tax law directed at air, water, noise and solid waste pollution. At the same time, China has been pursuing a separate policy of encouraging the development of agricultural cooperatives. Cooperatives of all types play an important part in China’s economic and social development but agricultural cooperatives have a particular importance given their role in assuring a stable food supply. They bring benefits in the form of economic stimulation, social cohesion and increased productivity. The Chinese central government, recognizing the importance of these benefits, has provided incentives to the development of cooperatives, specifically exemptions from VAT and stamp duty. Local governments in their turn have provided incentives, notably exemptions from a range of taxes including land use tax, business tax and tax registration fees. This paper examines the extent to which Chinese cooperative enterprises – and agricultural cooperatives in particular – can and should be subjected to environmental imposts and how the two policy goals of environmental protection and the promotion of agricultural cooperatives can best be aligned to best ensure positive outcomes for both.

Keywords: tax policy, agricultural cooperatives, environmental protection

Suggested Citation

Butcher, Cyril and Xu, Yan, Chinese Tax Policy and the Promotion of Agricultural Cooperatives and Environmental Protection (2016). (2016) 31 Australian Tax Forum , Available at SSRN: https://ssrn.com/abstract=2965988

Cyril Butcher

UNSW Business School ( email )

Room 2038
Quadrangle building
Sydney
Australia
+61 2 9313 6658 (Phone)
+61 2 9313 6658 (Fax)

Yan Xu (Contact Author)

University of New South Wales ( email )

Kensington
High St
Sydney, NSW 2052
Australia

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