Starting next year, volatile organic compounds will be included in the scope of environmental taxation.

Governance of volatile organic compounds is a key focus and challenge in recent years in the battle to protect the blue skies. The Ministry of Finance, State Taxation Administration, and Ministry of Ecology and Environment recently jointly issued a notice, specifying that a pilot project to levy an environmental protection tax on volatile organic compounds will be launched from January 1, 2027, and all volatile organic compounds will be included in the tax levy. China is moving a step further in controlling air pollution with the promotion of a green tax system.