China expands environmental protection tax to cover more volatile organic compounds

Xinhua Updated: 2025-10-29

BEIJING -- Top legislature on Tuesday passed an amendment to the Environmental Protection Tax Law, broadening the scope of volatile organic compounds (VOCs) subject to the environmental protection tax in a bid to strengthen air pollution control.

The amendment, effective immediately upon its announcement, was adopted at the 18th session of the Standing Committee of the 14th National People's Congress.

The revised law introduces a new provision stipulating that the State Council shall carry out pilot projects to levy environmental protection tax on entities that directly discharge VOCs not listed in the appendix of taxable pollutants of the law.

VOCs are a key source of fine particulate matter (PM2.5) and ozone formation, contributing to atmospheric environmental issues such as smog and photochemical smog. Currently, more than 300 types of VOCs can be detected.

When the law was enacted in 2016, it covered only 18 types of VOCs, including benzene and formaldehyde.

By adding more types of VOCs to the list subject to the environmental protection tax, it is expected to reinforce environmental protection efforts and further improve air quality.

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