China Urges End To Polluters' Tax Breaks - AP

[Eugene]

Source: Associated Press

China Urges End To Polluters' Tax Breaks
Chinese Premier Urges End To Polluters' Tax Breaks
And Other Perks

BEIJING, Apr. 27, 2007

(AP) The Chinese premier pledged Friday to phase out tax breaks
and discounts on land and electricity for highly polluting industries,
saying the country's environmental situation was grim and required
urgent action.

-snip-

The central government has difficulty ensuring that conservation
initiatives are enforced at the local level, where many lower
officials reap the rewards of China's rapid industrialization and
economic growth at the expense of the environment.

-snip-

Wen said the government would "clean up and rectify preferential
policies that give land and electricity discounts or tax breaks to
energy intensive or highly polluting industries."

Policies vary widely from place to place, but China's local
governments routinely offer free or cut-rate real estate and
utilities to developers looking to set up lucrative businesses,
such as steel mills or chemical plants. Tax breaks are also used
to lure potential investors.

-snip-

Read more: http://www.cbsnews.com/stories/2007/04/27/ap/asia/main2734603.shtml