“It moves when it hit,” the strategic choice of new energy finance and tax policy

Polaris solar PV net news: under the national strategic framework, fiscal policy should play a role in the development of new energy industry? How to develop new energy fields in China’s fiscal and taxation policies?

Fiscal and tax policies “that moves when it moves”

Given the urgency of China’s energy situation and new energy development, fiscal and tax policies involved in the new energy sector, support industries and enterprise development is necessary. Fiscal policy is an important aspect of new national energy policy, has three main effects.

Balance externalities in the energy field. As we all know, negative externalities in fossil fuels is clear, while the negative externalities of the new energy industry is very weak. Energy industry can be through fiscal policies integration of negative externalities related to energy enterprises in their production costs, thereby enhancing the competitiveness of new energy industries.

Ease the energy monopoly in the field. Natural monopolies in the field of fossil energy, resulting in insufficient quantity of energy enterprises, hindering the industry’s innovation and development. Fiscal policy interventions to reduce capital barriers, technical barriers to trade, in new energy production costs, promotion of new investment in technological innovation in the field of energy.

Support the growth of new energy industry. New energy industry is a new industry, and its rapid development requires a certain amount of policy support. Judging from the industry life cycle, current tax policy involved in new energy industry’s golden age.

Status: concentrated PV and new energy vehicle

At present, new energy finance policy in China very much. Include: special funds and bonds, such as renewable energy and scientific research, standards, demonstration of infrastructure investment, such as grid and smart grid development, at all levels; subsidies, including investment loans, Internet subsidy, subsidy and other government investment fund; government procurement policies, and so on.

In the area of tax policy, tax incentives are most common. Standard for 6% to increase corporation tax for small hydropower, wind power, photovoltaic industry by half, biomass energy and chemical industry in the implementation of drawback policy. Because new energy equipment in the field of disposable spending was huge, but are generally not required to purchase raw materials in the production process characteristics, tax relief can be reduced to the maximum extent production costs, the promotion of new energy industry development. In the area of import duties, income tax and consumption tax, also imposed on new energy industries must be given preferential policies, but narrow coverage, offer less.

Broken down by industry, new energy finance and taxation policy in China is mainly focused on two broad areas: areas of PV industry and the promotion of new energy vehicles.

According to incomplete statistics, from 2010 to 2014, the PV industry policy at national level have more than 10 items, local policies by as much as forty or fifty. Since 2012, in the area of promotion of new energy vehicles, and issued a total of six support policy at national level, including model cities, subsidy, exemption from purchase tax, government procurement and other Central and local policy. Especially in Beijing, Shanghai and other places recently introduced policies such as subsidies, VAT, and to the promotion of new energy vehicles is a big positive.

Sound direction: frame + law

Through the contrast between China and Japan and the United States, European Union countries and other new energy finance and taxation policies in developed countries, you can see that, although China’s relevant policies have a lot of, all areas involved, but the overall framework should be further improved. Mentioned in China’s new energy development under the background of national strategic industrial level, has formulated long-term development planning and perfect relevant legal construction.

Also, you need to speed up the development of a sound ecological taxation policy, further strengthening of high energy-consuming and high-polluting sectors of adverse constraints policy construction, by way of internal transfer costs to support new energy development. EU Member States have generally adopted a strict ecological taxation policy, through energy taxes, fuel tax, eco-tax and other taxes also bind with high energy consumption and high pollution economy Japan also levy a higher gasoline tax, fuel, vehicle purchase tax for their promotion of electric vehicles.

In addition, the new energy and industrial development requires coordination of other policies. For example, if total cost accounting approach to pricing of energy products, environmental costs and resource depletion after the exit costs are taken into account, will greatly enhance the competitiveness of new energy industries.

Finally, the new evaluation method of energy taxation policies need further improvement. Evaluation of the current state of many policy lag, with the continuous development of new energy, fiscal and tax policy’s effects begin to emerge, explore scientific policy evaluation methods to help guide the direction of fiscal policy.

Original title: the strategic choice of new energy finance and tax policy

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