Fundamental of environmental protection tax in Vietnam
Adjusting scope
Environmental protection law no 57/2010/QH12 outlines key aspects such as taxable and non-taxable subjects, taxpayers, tax bases, tax declaration processes, tax calculation methods, tax payment obligations, and procedures for environmental protection tax refunds.
Objectives
The government identifies nine groups of taxable subjects, which include: a) various fuels such as gasoline (excluding ethanol), aircraft fuel, diesel oil, petroleum, fuel oil, lubricants, and grease; b) different types of coal, including lignite, anthracite, fat coal, and other coal; c) hydrogen-chlorofluorocarbon liquids (HCFC); d) taxable plastic bags; e) restricted-use herbicides; f) restricted-use pesticides; g) restricted-use forest product preservatives; h) restricted-use warehouse disinfectants; and i) additional taxable objects that may be regulated by the National Assembly Standing Committee as needed.
Goods is not specified in Article 3 (taxable subject) of this Law shall not be subject to environmental tax.
Goods specified in Article 3 of this Law are exempt from environmental tax under certain conditions: (a) goods in transit or transshipped through Vietnam's borders, including those transported from exporting to importing countries without undergoing import/export procedures; (b) temporarily imported goods intended for re-export within the legally prescribed timeframe; and (c) goods directly exported by production facilities or through entrusted export businesses, excluding purchases made by organizations, households, and individuals subject to environmental protection taxes.
- Environmental protection taxpayer is organizations, households and individuals producing, importing goods under taxable subject provided for in Article 3 of this Law.
In specific circumstances, the environmental protection taxpayer is defined as follows: a) for goods imported on commission, the individual or entity that entrusted the importation is responsible for the tax; b) organizations, households, and individuals acting as procurement hubs for coal, who are unable to provide documentation proving the payment of environmental protection tax, shall also be considered taxpayers.
Tax base
- Tax base of environmental protection is the number of taxable goods and absolute rate.
The taxable goods are defined as follows: for domestically produced items, the taxable quantity includes all goods that are produced, sold, exchanged, consumed internally, or donated; for imported items, the taxable quantity is simply the total amount of goods brought into the country.
- Absolute rate for tax calculation specified in Article 8 (regulated tariff table) of this Law.
Tax calculation method
The amount of environmental protection tax payable = the quantity of unit of dutiable goods x absolute rate specified on a unit of goods.
To calculate the payable tax amount, the quantity of the taxable goods unit and the absolute tax rate set by the government shall be calculated Specifically:
- Quantity of taxable goods units is determined as follows:
+ Domestically produced goods: The quantity of taxable goods is the quantity of manufactured goods exchanged, exchanged, internal consumed, donated, promoted and advertised.
+ Imported goods: The quantity of taxable goods is the quantity of imported goods.
Mixed fuels, which include a combination of petrol and oil, are subject to taxation based on the quantity of fossil-based petrol, oil, and grease within these fuels The taxable goods are calculated from the volume of mixed fuels that are imported, produced, sold, exchanged, donated, or consumed domestically This calculation adheres to specific measurement units and tax regulations applicable to the respective goods.
The tax on fossil-based petrol, oil, and grease is determined by calculating the quantity of imported fuel, whether sold, consumed, exchanged, or donated, multiplied by the percentage of fossil-based gasoline, oil, and grease present in mixed fuels.
Multi-layer plastic bags made from single plastics like HDPE, LDPE, and LLDPE, as well as other materials such as PP, PA, aluminum, and paper, have their environmental impact assessed based on the weight percentage of these single plastic films.
- Absolute tax rate per unit of goods
According to Clause 1, Article 1 of Resolution 579/2018 / UBTVQH14, the absolute tax rate for 1 unit of goods is set by the State for each type of goods as follows:
Table 1.1 Environmental protection tax schedule
No Product Unit Tax rate
III Hydro-chloro-fluoro-carbon (HCFC) solution, kilogram 5.000 including HCFC, contained in a mixture containing HCFC solution
IV Taxable Plastic bags kilogram 50.000
V Herbicides are of limited use kilogram 500
VI Termiticides are of limited use kilogram 1.000
VII Forest preservatives are of limited use kilogram 1.000VIII Warehouse disinfectants are of limited use kilogram 1.000
Tax declaration, tax calculation and tax refund
Tax declarations, calculations, and payments for environmental protection related to goods produced, sold, exchanged, internally consumed, or donated must be completed monthly, in accordance with legal tax administration regulations.
- The tax declaration, tax calculation, tax payment for environmental protection on imported goods shall be made at the same to time of import tax declaration and tax payment.
- Environmental protection tax is only paid once for goods produced or imported.
In addition, Article 11 regulates about the tax refund Environmental protection taxpayer is paid tax refund in the following cases:
- Imported goods are still stored in warehouse, storage at the border gate and are subject to be supervised by the customs authority for re-export to foreign countries;
Imported goods, including gasoline and petrol, are transported and sold abroad through agents in Vietnam These fuels are specifically intended for vehicles of foreign firms, utilizing Vietnam's ports and transportation means along international routes, in accordance with legal regulations.
- Goods temporarily imported for re-export by business mode of temporary import for re- export;
- Goods imported by the importer re-exporting to foreign countries;
- Goods temporarily imported for participation in fairs, exhibitions and introduction of products in accordance with the law when re-exported to foreign countries.
Impact of Environmental Protection Tax
Economy
The Environmental Protection Tax (EPT) targets the production and importation of specific goods deemed harmful to the environment, with petroleum and coal being the most significant contributors.
Without government intervention, companies and individuals lack the incentive to consider environmental damage, as its effects are widely dispersed and often do not directly impact the polluters Consequently, safeguarding the environment necessitates collective action, primarily driven by a government's taxation system Essentially, the government acts as a tax collector, shaping the demand for Environmental Protection Tax.
Environmental taxes have many important effects, such as the ability to raise public revenue and economic efficiency.
2.1.1.1 Revenue from Environmental Protection Tax 2.1.1.1.1 Environmental Protection Tax Hikes
On 20/09/2018, the National Assembly's Standing Committee passed a resolution which raises the EPT on some main types of goods and will take effect from January 1, 2019.
Table 1.1 Effects of Environmental Protection Tax Hikes
No Goods Unit Tax rate Adjusted tax rate Changes
3 Heavy fuel oil and lubricants liter 900 2,000 +1100
( Excludes plastic bags used for packaging or which are “environmentally friendly”
(Source: Resolution 579/2018/UBTVQH14 promulgating environmental taxes, taken effect on 01/01/2019)
Vietnam's petroleum products have emerged as a significant revenue stream, contributing approximately 7% to government income through import duties on petrol and oil According to the General Department of Customs, oil and petroleum product imports totaled 8.63 million tons in the first eight months of 2018, with an import value of USD 5.74 billion, reflecting a 27.3% increase compared to the same period in 2017.
Vietnam's revenue from import duties on petrol products is declining due to significant reductions in duty rates resulting from the country's tariff commitments Currently, Vietnam applies a maximum most-favored-nation import duty rate of 40% on petrol for all WTO members Since 2012, preferential import duty rates for petrol and various fuels from ASEAN countries have been set at 20% for petrol, 10% for jet fuel, 7% for kerosene, 5% for diesel oil, and 0% for fuel oil Additionally, exporters from the Republic of Korea benefit from a preferential duty rate of 10% for petrol and 5% for oil, with these rates expected to gradually decrease to 0%.
According to the Financial Times, revenue from import duties on petroleum products has significantly declined from VND 53 trillion (USD 2.3 billion) in 2015 to VND 14.1 trillion (USD 613 million) in 2017 An anticipated tax increase is expected to generate over VND 15.7 trillion (USD 672 million) annually for government revenue.
Due to declining revenue from import duties, the government will likely increase the environmental tax to maintain budget balance Essentially, the Environmental Protection Tax (EPT) will serve to offset the loss in import-export tax revenue.
2.1.1.2 Economic Efficiency of Environmental Protection Tax 2.1.1.2.1 Low expenditure on environmental protection
The concern of economic efficiency is how environmental tax revenues will be spent According to Dr Dinh Tuan Minh, an economic expert, speaks to the
The environmental protection tax in Vietnam is not designated for specific purposes or sectors; instead, the funds collected contribute to the government budget, with a portion allocated for environmental protection efforts Essentially, this tax serves to offset the decrease in import-export taxes.
The government’s intention to boost the budget through higher environmental protection taxes may lead to a misunderstanding of its environmental objectives A significant issue is that the funds generated are not primarily allocated to environmental initiatives but are instead utilized for various other purposes The Ministry of Finance's report failed to clarify the intended use of the environmental tax revenues.
Dr Le Thi Thuy Van, head of the Department of Science Management and International Cooperation at the Financial Strategy and Policy Institute under the Ministry of Finance, revealed that the annual government budget for environmental activities exceeds 1% of total government expenditures From 2013 to 2018, the total budget allocated for environmental protection reached VND 72.42 trillion, comprising VND 10 trillion from the central budget and VND 62.42 trillion from local budgets.
National Assembly Chairwoman Nguyen Thi Kim Ngan emphasized that all revenue generated from environmental taxes should be directed into the government budget specifically for environmental protection efforts She stated, "This approach ensures that the public understands the funds are not allocated for unrelated purposes."
In 2016, Vietnam's revenue from the Environmental Protection Tax (EPT) soared to VND 42.4 trillion (approximately USD 1.84 billion), marking a significant increase of nearly 57% compared to 2015 Meanwhile, expenditures on environmental protection amounted to only VND 12.3 trillion, representing just 29% of the total tax revenue.
2.1.1.2.2 Modest results from environmental protection
The government has allocated central and local budgets, along with official development assistance, to invest in green growth initiatives aimed at achieving economic development while safeguarding the environment and minimizing the unsustainable use of natural resources According to the Organization for Economic Cooperation and Development, green growth is essential for preserving biodiversity Data from the Ministry of Finance reveals that between 2012 and 2015, the government spent VND 930 billion on the National Target Program for Energy Efficiency and Conservation, VND 49.32 trillion on the Forest Protection and Development Plan from 2011 to 2020, VND 5.86 quadrillion on the National Target Program to combat pollution and enhance environmental quality from 2013 to 2015, and VND 1.77 trillion on the National Target Program addressing climate change.
Dr Le Thi Thuy Van highlighted concerns regarding the inefficient and scattered budget spending among certain units, noting instances of misuse for unintended purposes, particularly in the allocation of funds for environmental investigations and surveys.
Vietnam has not paid much attention to the allocation of funds for the improvement of the criteria and technical standards on environmental protection.
Private-sector investment in environmental protection remains insufficient, making government funding the primary financial source In areas facing budget limitations, stakeholders continue to request additional financial support from the central government for addressing environmental pollution issues.
The restructuring of government budget expenditures towards green finance is crucial for enhancing the effectiveness of economic and social development initiatives, as outlined in the Financial Strategy leading up to 2020.
The tax must be credible and its rate predictable in order to motivate environmental improvements Economic efficiency requires transparency and management ability of government.
2.1.2 Supply side (Taxpayers) 2.1.2.1 Individuals/Households
Environment
The tax rate should be commensurate with the environmental damage.
For many years, Vietnamese entertained an illusion about the country’s rich natural resources, believing that they have “gold forests and silver seas” Only recently, have
Nguyen Thanh Son, the former director of the management board for Coal Projects in the Red River Delta, emphasized that Vietnam must not only work towards decreasing its dependence on natural resources but also aim to minimize resource exploitation as soon as possible.
Vietnam ranks as the third largest mineral producer in Southeast Asia, thanks to its vast reserves However, significant mining activities over the past twenty years have raised concerns about the potential depletion of various mineral resources in the country.
Statistics from the General Statistics Office of Vietnam (GSO) showed that the mining industry has posted a record slump since 2011, with the growth rate dropping by 7.1% in
2017 and 4% in 2016 This could also lead to an alarming conclusion – the mining industry will be unable to return to growth, and so the growth pattern must be transformed.
The General Statistics Office (GSO) has linked the recent decline in economic performance to a significant decrease in crude oil and coal production This downturn is a direct result of Vietnam's previous development strategy, which heavily relied on the mining sector Historically, the extraction of natural resources like oil, coal, and minerals was crucial to the country's economic growth.
The mining industry continues to represent approximately 10% of GDP, which is substantial given the rising challenges in resource extraction and the volatility of prices and supply-demand dynamics in the global market.
Starting from January 1, 2019, the environmental tax on petroleum increased by 1,000 VND per liter, impacting PVOIL's business performance In November and December 2018, customers began purchasing only essential amounts, leading to a decline in PVOIL's output and hindering the company's ability to meet its five-month production plan and overall annual targets In response to government requirements, PVOIL successfully transitioned from RON 92 gasoline to E5 RON 92 (E5 bio-fuel) at the beginning of 2018.
Petroleum diesel and gasoline are complex mixtures containing hundreds of chemicals with varying hydrocarbon chains, many of which are hazardous and toxic Key volatile compounds, including benzene, toluene, and xylene, contribute significantly to the health risks and environmental pollution linked to the combustion of petroleum-based fuels.
The process to produce E5 bio-fuel include 3 main components: biodiesel (diesel alternative), biogasoline and biogas (fermentation of carbohydrates from various feedstocks, such as corn, sugar cane, wood).
The burning of fossil fuels, including coal, oil, and natural gas, is a significant contributor to the rising levels of carbon dioxide in the Earth's atmosphere.
Greenhouse gases, such as carbon dioxide, permit solar energy to penetrate the Earth's atmosphere while limiting the energy that can escape back into space, leading to global warming Transitioning from fossil fuels to biomass-based fuels offers an environmental advantage, as biomass energy does not contribute to the atmospheric carbon dioxide levels that drive climate change.
In conclusion, that the exploitation of mineral resources and extraction of fossil fuels are both at lower level will gradually contribute to environmental improvement.
Society
2.3.1 Consumption of Environmentally Friendly Alternatives
Implementing the EPT can significantly alter consumer behavior by encouraging the use of eco-friendly products and imposing substantial taxes on harmful substances like nylon and hydrochlorofluorocarbons (HCFCs).
The rise in EPT is expected to impact the transport sector significantly Nevertheless, the government aims for this tax increase to promote the adoption of eco-friendly alternatives, including E5 bio-fuel.
Deputy Minister of Industry and Trade (MOIT) Do Thang Hai said that according to the roadmap outlined by the Government, E5 bio-fuel has been sold nationwide instead of
RON92 petrol since January 1, 2018, in a bid to protect the environment.
In 2017, the E5 bio-fuel accounts for only 9% of the total petroleum consumption in domestic market Additionally, several enterprises have claimed that the consumption of
E5 has not been as high as RON92 and recommended that the sale of E5 was suspended.
For instance, in the first 2 months of 2018, Ho Chi Minh City One Member Limited
Liability Oil and Gas Company (Saigon Petro) said that the consumption of E5 accounted for less than 30% of its total petrol consumption, while the consumption of RON92 accounted for over 65%.
In the first two months of 2018, the consumption of E5 bio-fuel showed significant growth, with reports indicating that it accounted for approximately 42% of the total petrol distributed in the market during March and April This marks a remarkable increase of nearly 33% in domestic consumption compared to 2017 Notable petrol companies reported substantial rises in E5 sales, including Thien Minh Duc Petro with over a 70% increase, Military Petroleum Corporation at 64.3%, and Petrolimex exceeding 48%.
Economists suggest that introducing new commodities to the market involves a lengthy process for effective market control With E5 bio-fuel having been in use for over a year, current data may not fully represent its market impact Expecting this new product to entirely replace a long-established commodity that has been available for decades is unrealistic.
Law on Environmental Protection Tax aims to raise public awareness about environmental protection, besides create more revenues to fund environmental protection activities.
Action must follow awareness Understanding awareness of pollution and support for environmental protection from the general public is essential for informing governmental approaches to dealing with this problem.
Take the example of imposing EPT on nylon in Ho Chi Minh City:
Table 2 Change in quantity of nylon in Ho Chi Minh city in 2014 and 2017
(Unit: Quantity of nylon Quantity of nylon Quantity of nylon tons/year) produced imposed EPT imported
The rate of quantity of nylon imposed per quantity of nylon produced in 2014 and
2017 was 3.24% and 1.73%, respectively While the quantity was higher over 3 years, there was a drop in this rate This proved the lack of awareness and action.
In summary, taxpayers need to raise self-awareness about current situation of surroundings’ pollution Besides, they have to make obligations to pay tax actively and on time.
Applications in practice
Practical situation
Businesses, both individuals and organizations, are key contributors to environmental protection and sustainable development in Vietnam, yet they face significant challenges in managing pollution Despite the high levels of pollution in the country, many companies lack efficient and modern waste processing systems, leading to inadequate solid waste management and severe water pollution, particularly in industrial parks Small businesses struggle to process waste effectively, exacerbating the problem Nguyen The Chinh, rector at the Institute of Strategy and Policy on Natural Resources and Environment, highlights that the adoption of modern technology in these companies lags behind that of developed nations, and the operations of industrial clusters significantly worsen pollution Consequently, environmental accidents are becoming increasingly frequent, impacting both industry and society.
The Environment Protection Tax is an effective economic tool for enhancing environmental management by requiring individuals and organizations that use polluting products to pay taxes This tax incentivizes large waste producers to adopt innovative methods for environmental protection, fostering a green economy and sustainable development Previously, the selling prices of goods and services did not account for social costs, allowing businesses to profit without considering environmental impacts However, the implementation of the Environment Protection Tax has increased product prices, directly influencing profitability and compelling businesses to raise their environmental awareness As a result, more companies are embracing eco-friendly practices and offering green products, such as supermarkets opting for banana leaves instead of plastic bags for wrapping vegetables.
In Vietnam, nine leading companies in FMCG and packaging industries (Coca Cola, FrieslandCampina, La Vie, Nestlé, NutiFood, Suntory PepsiCo, Tetra Pak, TH
Group and URC Việt Nam) joined hands to launch the coalition Packaging Recycling
Organization Vietnam (PRO) in HCM City on June 21, 2019 Some big brands such as
Coca-Cola, Evian, Starbucks, McDonald's, have continuously taken actions to reduce plastic waste pollution in their own production and service processes Besides, Comfort,
Major brands like Sunlight and Love Beauty and Planet, part of the Unilever Group, have transitioned to using 100% recycled plastic and biodegradable bags for their product packaging Lotte Mart has adopted banana leaves and bagasse bags as alternatives to disposable plastic bags, while Saigon Co.op has eliminated plastic straws from over 600 supermarkets in Vietnam Additionally, Nestlé Vietnam has committed to significant sustainability goals, including the complete recycling and reuse of all product packaging by 2025, ensuring all factory waste is collected and sorted at the source, and preventing the burial of solid waste in the environment.
Many companies are now leading initiatives to collect disposable plastic waste, promoting environmental sustainability This commitment not only fosters a safer workplace but also lowers resource-related costs while enhancing the brand image and competitiveness of the business.
The Environment Protection Tax, as outlined in legal documents, lacks specificity, making it challenging to implement effectively Conflicting regulations further complicate the application process, resulting in inconsistencies across regions This disparity can create unfair taxation scenarios for businesses producing identical products in different areas, leading to situations where taxable entities evade their responsibilities while non-taxable entities face excessive taxation Consequently, despite existing guidelines addressing this tax, the fundamental issues remain unresolved.
The Ministry of Finance has proposed an increase in the Environment Protection Tax on gasoline, raising it from 3,000 VND to 4,000 VND per liter starting July 1, 2018, as part of a strategy to stabilize policy and comply with international commitments while combating petrol smuggling Additionally, the tax on diesel will increase by 500 VND per liter, and madut oil, lubricant, and grease taxes are set to rise by 1,000 VND per liter However, this tax hike is expected to raise gasoline prices in Vietnam, which may adversely affect citizens and businesses, particularly given the country's low average income Mr Nguyen Minh Duc from the VCCI's Legal Department emphasized that raising taxes on fuel to address budget deficits is unjustifiable, leading to mixed reactions from the public and economic experts.
Another matter of concern is how environmental tax revenues will be spent.
National Assembly Chairwoman Nguyen Thi Kim Ngan emphasized that all revenue generated from the environmental tax should be directed into the state budget specifically for environmental protection initiatives She stated, "This approach ensures that the public can see the funds are dedicated solely to environmental efforts, rather than being allocated for other purposes."
In 2016, Vietnam's revenue from the environmental protection tax reached VND 42.4 trillion (USD 1.84 billion), marking a significant increase of nearly 57 percent from the previous year However, spending on environmental protection during the same period was only VND 12.3 trillion, accounting for just 29 percent of the tax revenue Between 2012 and 2016, the environmental protection tax revenues showed a consistent upward trend, with totals of VND 11.16 trillion in 2012, VND 11.51 trillion in 2013, VND 11.97 trillion in 2014, and VND 27.02 trillion in 2015.
2016 were estimated at 42,393 billion VND The revenues of environmental protection tax accounted for approximately 1.5% - 4.1% of the total State budget revenues and 0.3%
The Environment Protection Tax in Vietnam fails to adequately address the pollution and waste generated by producers, as its tax rates lack effectiveness and are influenced by governmental budgetary pressures Additionally, existing laws do not facilitate the active participation of organizations and individuals in environmental protection efforts Consequently, the responsibility for safeguarding the environment appears to rest solely with authorities, rather than being embraced as a collective duty by the entire population.
Case study
In Vietnam, the Environment Protection Tax is imposed on plastic bags based on weight, with an average of 200-500 bags per kilogram incurring a tax of approximately 50,000 VND Despite its perceived inefficiency, experts argue that implementing a tax on individual plastic bags in Vietnam is not feasible.
The existing environmental protection tax law provides only general guidelines concerning plastic bags, leading to challenges in accurately identifying taxable plastic bags To address these issues, the Government has implemented Decree No.
69/2012/ND-CP regulating that plastic bags are subject to tax and put this provision in the Law on Environmental Protection Tax to enhance the legality.
From 2014 to 2016, Vietnam collected approximately 50 to 70 billion VND in environmental protection tax on nylon bags, which represents a minimal portion of actual usage In contrast, developed countries like England and Iceland impose a tax on each plastic bag, with charges starting at around 4,500 VND or more per bag.
Under Article 3 of the Law on Environment Protection Tax 2010, multi-layer plastic bags made from single plastics such as HDPE, LDPE, LLDPE, and other materials like aluminum and paper are subject to an Environment Protection Tax This tax is calculated based on the weight ratio of the single plastics used in the multi-layer bags, with rates ranging from 30,000 VND to 50,000 VND per kilogram.
It is estimated that by Ho Chi Minh City Department of Natural Resources and Environment, in 2017, 80,000 tons of plastic bags were discharged into the environment.
However, the proportion of plastic bags collected and recycled by waste treatment companies is only 38%.
The alarming rise in plastic bag waste has escalated from approximately 40 tons per day in 2008 to 228 tons per day by 2017 Despite this increase, the environmental protection tax contributions have declined significantly, dropping from 746 tons in 2014 to 577 tons in 2017, a decrease of 23% Additionally, the importation of plastic bags surged nearly 250% over four years, highlighting a growing environmental concern.
2014 was 63.8 tons to 220 tons in 2017.
The audit reveals a significant policy gap regarding the taxation of bags without bottoms, which are currently exempt from tax For instance, when customers purchase coffee to-go, sellers frequently provide these bottomless bags for convenience, highlighting the need for a review of the tax regulations surrounding such packaging.
To address the shortcomings in tax management for plastic business households, the audit team requested electricity consumption data from Ho Chi Minh City Power Company for households involved in plastic bag production.
Households can generate electricity costs for producing plastic bags that are up to eight times greater than their taxable revenue For instance, if a household declares an annual revenue of VND 100-200 million, the actual electricity expenses associated with plastic bag production could exceed VND 1 billion.
The implementation of high taxation on small producers has resulted in increased prices for plastic bags, which are predominantly manufactured by these smaller establishments for markets and street vendors.
Discussion
A fundamental principle of taxation is that taxes should primarily target final products, consumption, and incomes Imposing taxes on intermediate goods can lead to increased economic costs by distorting production methods This approach is crucial for promoting efficiency in the economy and minimizing unnecessary financial burdens.
The Protection Tax should encompass a wide range of environmental damages, ideally exceeding the extent of the harm caused Its rate must align with the level of environmental impact, ensuring credibility and predictability to effectively encourage advancements in environmental practices.
Policymakers must evaluate the effects of environmental taxes on vulnerable populations, including low-income households and businesses that are heavily reliant on trade and contribute significantly to pollution The revenue generated from these taxes can support fiscal consolidation and potentially lower other tax burdens It is essential to address the distributional impacts of these taxes through complementary policy measures.
Assessing competitiveness concerns is essential, and effective responses include coordination and transitional relief measures Clear communication plays a vital role in gaining public acceptance for environmental taxation Additionally, it may be necessary to integrate environmental taxes with other policy instruments to effectively tackle specific issues.
Vietnam should strategically select appropriate tax targets, favoring consumer taxes over producer taxes, as they effectively influence consumer behavior and reduce product consumption To support this, it is essential to provide consumers with alternative products and implement policies that encourage environmentally friendly production and consumption Additionally, businesses must invest in new technologies and greener production methods while enhancing awareness among their employees and management The government should also strengthen regulations related to the Environment Protection Tax and create opportunities to advance science and technology initiatives, emphasizing the role of businesses in technological development.
Conclusion
Environmental taxation is crucial for tackling environmental issues effectively When designed thoughtfully and applied directly to harmful pollutants or activities at appropriate rates, taxes can drive significant change To enhance their effectiveness, these taxes should be integrated with other policy instruments, creating a comprehensive environmental strategy Authorities must explore various methods to optimize these taxes as essential tools for environmental support.
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