Money from the environmental protection tax belongs to local governments, according to a State Council circular issued on Dec 27.

It is aimed at helping local authorities improve the environment, and increase investment in environmental protection.

According to the Environmental Protection Tax Law, which was approved at the 25th meeting of the Standing Committee of the 12th National People’s Congress on Dec 25, 2016, enterprises and public institutions that discharge listed pollutants directly into the environment should pay the tax. It will take effect starting on Jan 1, 2018.