China amends its Environmental Protection Tax Law to introduce a pilot program for taxing VOC emissions, empowering the State Council to develop and implement detailed rules.
Source: Standing Committee of the National People’s Congress
Compiled by Lawrence Sun
Decision of the Standing Committee of the National People’s Congress on Amending the Environmental Protection Tax Law of the People’s Republic of China
(Presidential Order No. 62)
(Adopted at the 18th Session of the Standing Committee of the 14th National People’s Congress on 28 October 2025)
The 18th Session of the Standing Committee of the 14th National People’s Congress has decided to amend the Environmental Protection Tax Law of the People’s Republic of China as follows:
An article is added as Article 27:
“In light of the needs of national economic and social development and environmental protection, the State Council may conduct pilot programs for the collection of environmental protection tax on volatile organic compounds (VOCs) that are directly discharged into the environment and are not included in the Table of Taxable Pollutants and Equivalent Values attached to this Law.
The implementation measures for such pilot programs shall be formulated by the State Council and filed with the Standing Committee of the National People’s Congress for record.
“The State Council and its relevant departments shall, taking into account the characteristics of VOCs, set reasonable taxable scopes and tax-rate ranges, improve monitoring technologies and methodologies for calculating emissions, strengthen inter-agency coordination, and accelerate the advancement of the pilot programs.
“Within five years from the date on which the implementation measures of the pilot programs enter into force, the State Council shall report to the Standing Committee of the National People’s Congress on the progress of the VOC environmental protection tax pilot programs, and propose recommendations for amending the Law.”
This Decision shall enter into force as of the date of promulgation.
The Environmental Protection Tax Law of the People’s Republic of China shall be revised and renumbered accordingly in line with this Decision and republished.
Disclaimer: The English translation of the policy measures in this article is for reference only. In case of any discrepancy, the original Chinese text shall prevail.
