Ke Yuanmei, CFO of Kading Children Products Co, gets the first environmental tax receipt in East China's Fujian province on April 1. [Photo/Chinanews.com]

Ke Yuanmei, CFO of Kading Children Products Co, became the first person to pay environmental protection tax in East China's Fujian province on April 1, as the tax declaration period started on the day.

China's Environmental Protection Tax Law came into effect on Jan 1 this year, which stipulates companies and public institutions that discharge listed pollutants directly into the environment are subject to taxes for producing noise, air, and water pollution, as well as solid waste.

"It only took a few minutes to register, transfer, and receive a tax invoice," said Ke, adding that the tax gives companies an incentive to cut emissions and upgrade production technology, as the mechanism charges them based on the amount of pollutants discharged.

This is China's first tax clearly designed for environmental protection, which aims to help establish a "green" financial and taxation system and promote pollution control and treatment.

The introduction of the tax called an end to the "pollutant discharge fee," which China had been collecting for nearly 40 years.

Xiao Jiongdong, financial manager of Quanzhou Nanxin Bleaching and Dyeing Company, said though detailed items of the tax are almost the same as those in the fee era, it makes it easier for taxpayers to complete their duties. Companies can pay the environmental tax along with their corporate tax declaration.

"In the past, we did not know how much we should pay in advance, but now we know the exact tax payment before declaration," said Xiao.

He said the tax also has a more authoritative effect than administrative fees.

According to the Fujian environmental department, there were often defaults in paying pollutant discharge fees. The bureau lacked the manpower to impose effective supervision to carry out mandatory fee collection.