Core Viewpoint - The article discusses the upcoming expansion of the Environmental Protection Tax in China, particularly focusing on volatile organic compounds (VOCs), which are significant contributors to air pollution. The revision of the Environmental Protection Tax Law aims to enhance air quality and increase local government revenue through taxation on a broader range of VOCs [3][4]. Group 1: Legislative Changes - The draft amendment of the Environmental Protection Tax Law has been submitted for a second review, emphasizing the need for the State Council to establish a reasonable tax scope for VOCs and improve monitoring and emission calculation methods [3]. - The first draft of the amendment included all VOCs in the tax scope, with a focus on pilot programs before full implementation, indicating a strategic approach to environmental taxation [4]. Group 2: Industry Impact - Key industries such as petrochemicals, chemicals, industrial coatings, packaging printing, and oil storage and transportation are identified as major sources of VOC emissions in China. The inclusion of all VOCs in the tax will compel these industries to undergo transformation and cleaner production processes [4]. - The amendment allows the State Council to conduct pilot tax collection on VOCs not listed in the current tax table, with a five-year reporting requirement to the National People's Congress on the pilot's outcomes [4]. Group 3: Financial Implications - Environmental Protection Tax revenue has fluctuated around 20 billion yuan in recent years, with a projected increase to 24.6 billion yuan in 2024, representing a year-on-year growth of 19.7%. The first three quarters of 2025 saw revenues of 20.8 billion yuan, up 13.8% compared to the previous year, significantly outpacing the overall national tax revenue growth of 0.7% [4].