A file photo of farmers irrigating their crops. [Photo: Chinanews.com]

The Chinese Ministry of Finance says the country will expand a water resource tax pilot program to more areas, in a bid to encourage water conservation.

The ministry says nine provincial regions, including Beijing, Inner Mongolia, Henan, Sichuan and Ningxia, will begin the new tax pilot next month.

The move comes after 18 months of trials in Hebei Province.

Wang Jianfan is an official with the Ministry of Finance.

"By expanding the pilot program, we can better enable the tax lever effects and discourage irrational water usage, thereby preserving water resources. The program will help to prefect the design of our water resource taxes and provide conducive conditions to fully implement the tax system," explained Wang Jianfan, an official with the Ministry of Finance.

The water resource tax is collected based on the usage of surface and underground water.

Water use above quotas or in over-exploited areas will be levied with heavier taxes, while that for agricultural purposes will see a reduction or exemption.

The use of water that has come from sewage treatment facilities will also have favorable tax rates.