China likely to levy carbon tax around 2012

China is likely to levy a carbon tax, an environmental tax that is paid for carbon emissions, on its enterprises around 2012, in a bid to encourage the country's energy saving and environmentally friendly industries, the Economic Information Daily reported Tuesday.

Enterprises including coal, natural gas and oil companies would have to pay carbon tax in accordance with their carbon dioxide emissions, while energy saving and environmentally friendly industries are likely to be subsidized.

Considering the relatively low tax income of local governments, the central government should share the tax with local governments, with 30 percent going to the latter, the newspaper said, citing an unnamed expert.

Individuals who create carbon emissions by using coal and natural gas in their daily life won't be taxed.

Source: Chinadaily.com.cn