Circular on Adjusting and Improving Value-added Tax Policy on Products Made through and Labor Services for the Comprehensive Utilization of Resources
Circular on Adjusting and Improving Value-added Tax Policy on Products Made through and Labor Services for the Comprehensive Utilization of Resources
Circular on Adjusting and Improving Value-added Tax Policy on Products Made through and Labor Services for the Comprehensive Utilization of Resources
Cai Shui [2011] No.115
November 21 2011
The finance departments (bureaus) and the offices of the State Administration of Taxation of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, the financial ombudsman's offices of the Ministry of Finance in all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, and the finance bureau of Xinjiang Production and Construction Corps:
With a view to further implementing the basic national policy of resources conservation and environmental protection, vigorously developing the recycling economy and speeding up the construction of a resource-saving and environment-friendly society, with approval of the State Council, it has been decided to adjust and improve the value-added tax policy on products made through the comprehensive utilization of agriculture and forest residues and subject some additional products made through and labor services for the comprehensive utilization of resources to the preferential value-added tax policy. The relevant policy is hereby clarified as follows:
I.The sale of self-produced construction sand, gravel and aggregate which uses the building (construction) waste and coal gangue as raw materials shall be exempted from the value-added tax. The proportion of building (construction) waste or coal gangue shall not be lower than 90% in the raw materials, among which, the construction sand, gravel and aggregate produced with the building (construction) waste as the raw materials shall comply with the technical requirements of the Recycled Coarse Aggregate for Concrete (GB/T 25177-2010) and the Recycled Fine Aggregate Used for Concrete and Mortar (GB/T 25176-2010; The construction sand, gravel and aggregate produced with the coal gangue as the raw material shall comply with the technical requirements of the Sand for Building (GB/T 14684-2001) and Pebble and Crushed Stone for Building (GB/T 14685-2001).
II.The labor services for garbage disposal and sludge treatment shall be exempted from value-added tax. The garbage disposal refers to the operation of reducing, recovering and harmless treating garbage by means of the landfill, burning, and comprehensive treatment and recycling; the sludge treatment refers to the operation of stabilizing, reducing and harmless treating sludge generated after the treatment of wastewater.
III.The following self-produced goods shall be subject to the value-added tax policy of 100% refund upon collection:
1. Electric power and heating power generated from the waste heat and residual pressure produced in the process of industrial production. The raw materials for the generation of power (heat) completely use the above resources.
2. Electric power, heating power and fuel produced with kitchen waste, livestock manure, rice husks, peanut shells, corn cob, tea shell, cotton seed, three residues, inferior quality and small timber and firewood, oily water, organic wastewater and sludge generated after the treatment of wastewater, oil sludge (scum) generated in the process of oil extraction and methane produced by the fermentation of the above resources as the raw materials. The proportion of the above resources in the raw materials of production shall not be lower than 80%, among which, the proportion of resources which use oil sludge (scum) generated in the process of oil extraction to produce fuel shall not be lower than 60%.
The biomass power generation projects which use in the above resources shall comply with the requirements of the Provisions of the National Development and Reform Commission for the Administration of Power Generation from Renewable Energy (Fa Gai Neng Yuan [2006] No.13) and their production waste emissions shall meet the first stage standard of the Standard for the Air Pollutant Emissions of Thermal Power Plants (GB13223-2003) or the relevant provisions of the Standard for the Control of Pollution Caused by the Incineration of Municipal Solid Waste (GB18485-2001).
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