Page 169 - Low Carbon Development in China and India
P. 169
the existing capital use and management model, and enhancing
the capital-use efficiency are crucial for the local government to
successfully offer capital support for low carbon economy development.
On reform and innovative fiscal instruments, the special suggestions
mainly include:
• On tax policy, tax reduction and exemption for business income
taxes in certain industry (such as energy saving and environmental
protection, clean energy, etc.), adjustment of tax rate relating to
land use and sales (including urban maintenance and construction
tax, house duty, farmland occupation tax, land value increment
tax and urban land use tax, etc.), adjustment of tax rate relating to
emission-based vehicle and vessel taxes and newly added relevant
taxes (environment tax, carbon tax, financial transaction tax, etc.)
• It is suggested to adjust the revenue sharing proportion in case local
and central governments share the tax revenue so that the local
government could have more disposable revenue to invest in local
green low carbon economy growth. It is also advised that the newly
added taxes (environment tax, carbon tax, financial transaction
tax, etc.) should also take the revenue use and distribution into full
consideration, in particular, the influence on low carbon financing
of local government.
• Fiscal instruments such as reform of existing fees (such as increasing
pollutant discharge fee and road toll, etc.) and introducing the new
fees that may be easily implemented within a short term shall be
taken as the additional funding source by the local government.
The international experience that could be learnt from this includes:
(i) collecting different development fees in lump sum from real
estate developers based on different locations, (ii) asking developers
to assume the cost relating to overall city development in addition
to the location where the project lies, (iii) urging developers to use
land resources more effectively while providing additional capital,
and (iv) collecting congestion fees from vehicles in congestion areas
at peak hours.
• Transfer payment is an important source for local government on
low carbon financing. One form of supporting financing transfer
payment in local low carbon development sector is that the central
government will give certain construction fee subsidy for low carbon
programmes carried out by the local government with the capital in
and out of the budget. Besides, the transfer payment of the Central
government should match the local programme of the cities that
develop low carbon programmes and coordinate with the relevant
134 Low Carbon Development in China and India
the capital-use efficiency are crucial for the local government to
successfully offer capital support for low carbon economy development.
On reform and innovative fiscal instruments, the special suggestions
mainly include:
• On tax policy, tax reduction and exemption for business income
taxes in certain industry (such as energy saving and environmental
protection, clean energy, etc.), adjustment of tax rate relating to
land use and sales (including urban maintenance and construction
tax, house duty, farmland occupation tax, land value increment
tax and urban land use tax, etc.), adjustment of tax rate relating to
emission-based vehicle and vessel taxes and newly added relevant
taxes (environment tax, carbon tax, financial transaction tax, etc.)
• It is suggested to adjust the revenue sharing proportion in case local
and central governments share the tax revenue so that the local
government could have more disposable revenue to invest in local
green low carbon economy growth. It is also advised that the newly
added taxes (environment tax, carbon tax, financial transaction
tax, etc.) should also take the revenue use and distribution into full
consideration, in particular, the influence on low carbon financing
of local government.
• Fiscal instruments such as reform of existing fees (such as increasing
pollutant discharge fee and road toll, etc.) and introducing the new
fees that may be easily implemented within a short term shall be
taken as the additional funding source by the local government.
The international experience that could be learnt from this includes:
(i) collecting different development fees in lump sum from real
estate developers based on different locations, (ii) asking developers
to assume the cost relating to overall city development in addition
to the location where the project lies, (iii) urging developers to use
land resources more effectively while providing additional capital,
and (iv) collecting congestion fees from vehicles in congestion areas
at peak hours.
• Transfer payment is an important source for local government on
low carbon financing. One form of supporting financing transfer
payment in local low carbon development sector is that the central
government will give certain construction fee subsidy for low carbon
programmes carried out by the local government with the capital in
and out of the budget. Besides, the transfer payment of the Central
government should match the local programme of the cities that
develop low carbon programmes and coordinate with the relevant
134 Low Carbon Development in China and India
