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Three Chinese ministries are preparing a proposal for an environmental tax. It would be levied on emissions of carbon dioxide and discharges of polluted water. Initially, the tax would be implemented on a trial basis in four largely rural provinces, Hebei, Hunan, Jiangxi and Gansu.
The Finance Ministry, the Ministry of Environmental Protection and the State Administration of Taxation are set to make the proposal to the State Council soon. This move is in line with China's pledge to cut its carbon intensity, and create a greener economy.