Solutions for Developed Countries' Policies on Resource Recycling Taxes


Release time:

18 Apr,2013

Source: China E-waste Recycling Network

  In the later part of the last century, almost all economically developed countries, in the process of industrialization, faced resource and energy shortages, serious environmental pollution, and varying degrees of damage to the natural ecosystem due to rapid economic growth. So, how did these developed countries solve these problems? What tax policies did they adopt for recyclable resources, and can they serve as a reference for China's decision-making? Let's find out.

  Germany: Germany formulated a "Green Plan," introducing ecological taxes into product tax reforms in domestic industrial and economic sectors and financial investments. Ecological taxes are levied on products that use environmentally harmful materials and consume non-renewable resources. The introduction of ecological taxes helps the government control market orientation from a macro perspective, prompting manufacturers to adopt advanced processes and technologies, guiding producers' behavior through economic measures, and ultimately achieving the goal of improving consumption patterns and adjusting industrial structures.

  United States: The United States restricts the use of new raw materials by levying taxes on new materials, encouraging enterprises to use recycled resources. In addition, the United States levies landfill and incineration taxes on enterprises to reduce enterprises' use of raw materials and encourage the reuse of production waste and garbage. Arizona has implemented tax incentives for the recycling of waste materials since 1999.

  Japan: Reduced special depreciation, fixed asset tax, and income tax for enterprises that introduce recycling equipment. For waste plastic product recycling and processing equipment, in addition to the ordinary tax refund, the government also provides a special tax refund of 14% of the acquisition price during the year of use. For waste paper deinking equipment, impurity removal equipment for processing glass fragments, aluminum recycling equipment, and empty bottle cleaning equipment, in addition to special tax refunds, a three-year fixed asset tax refund is also available.

  Fixed asset tax can be reduced or exempted for public hazard prevention facilities, with the reduction or exemption rate ranging from 40% to 70% of the original tax amount depending on the type of facility. For various environmental protection facilities, the equipment depreciation rate is increased, adding a special depreciation rate of 14% to 20% to the original depreciation rate.

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