Green Tax Mulled to Help Fight Pollution

Yuan Qingdan, vice-director of the Policy Research Center for Environment and Economy under the Ministry of Environmental Protection, suggested that disposable plastic bags and lead-acid batteries should be subject to consumption tax.

A 5 percent consumption tax is currently levied on disposable chopsticks and solid-wood floors.

Yuan said fertilizers and pesticides, whose prices fall as their use increases, should be subject to consumption tax.

Ni said whether a rise in tax leads to price increases depends on "elasticity" in product prices.

"For example, cigarettes are a daily necessity for smokers. So a tax increase means smokers will pay more for cigarettes if they don't quit, and this is good.

"And if a tax increase on high-end watches raises their price, fewer people might buy them. This is good for reducing extravagance."