152
7 Water Pricing
industrial use. In 2012, the industrial surface fee ranged from 0.02 to 3.00 RMB/m
3 ,
with 1.94 RMB/m
3 in Beijing and 0.12 RMB/m
3 in Guangdong; the domestic fee
ranged from 0.02 to 2.75 RMB/m
3 , with 1.32 RMB/m
3 in Beijing and 0.12 RMB/m
3
in Guangdong; the industrial groundwater fee was between 0.015 and 5.80 RMB/m
3 ,
with 2.30 RMB/m
3 in Beijing and 0.50–4.00 RMB/m
3 in Guangdong; and the
domestic fee ranged from 0.015 to 9.00 RMB/m
3 , with 1.32 RMB/m
3 in Beijing
and 0.25–2.00 RMB/m
3 in Guangdong (MWR 2013). Generally, the water resources
fee standard is found to be higher in water-shortage regions, in developed regions,
particularly groundwater overdraft regions, and for industrial and commercial use.
In terms of amount, the national revenue increased rapidly from 1.29 billion RMB
in 2001 to 15.10 billion RMB in 2013 (Fig. 7.1). Under increasing standards and
improving collection, this revenue will continue to rise in the coming years. In 2012,
of 12.86 billion RMB collected, 7.02 billion RMB was from surface water fees, 5.75
billion RMB from groundwater fees, and the remainder from other sources (MWR
2013).
During a more than 30-year reforming process, the following issues, all of which
are related to conflicting interests, have been raised:
Debate on fee-to-tax reform. In China, tax is collected by the taxation department
and classed as general revenue and used for general expenditure, while the administrative fee is collected by the relevant department into a special account in the
financial system and utilized for special purposes. Thus, the administrative fee is
a departmental revenue. This issue has been debated twice: first in the late 1990s
0
1
2
3
4
5
6
1990
1995
2000
2005
2010
2015
Urban Water Supply Tariff
Wastewate Treatment Fee
Water Resources Fee
sum
Fig. 7.1 Beijing residential water tariff and regulation in 1990–2014. Unit RMB/m 3 . *The
2014 urban water supply tariff is the first block price. Sources Beijing Development and
Reform Commission
Elaborated by the author, based on Beijing Development and Reform Commission. Permission
granted by Beijing Development and Reform Commission on its website subject to proper citation
7 Water Pricing
industrial use. In 2012, the industrial surface fee ranged from 0.02 to 3.00 RMB/m
3 ,
with 1.94 RMB/m
3 in Beijing and 0.12 RMB/m
3 in Guangdong; the domestic fee
ranged from 0.02 to 2.75 RMB/m
3 , with 1.32 RMB/m
3 in Beijing and 0.12 RMB/m
3
in Guangdong; the industrial groundwater fee was between 0.015 and 5.80 RMB/m
3 ,
with 2.30 RMB/m
3 in Beijing and 0.50–4.00 RMB/m
3 in Guangdong; and the
domestic fee ranged from 0.015 to 9.00 RMB/m
3 , with 1.32 RMB/m
3 in Beijing
and 0.25–2.00 RMB/m
3 in Guangdong (MWR 2013). Generally, the water resources
fee standard is found to be higher in water-shortage regions, in developed regions,
particularly groundwater overdraft regions, and for industrial and commercial use.
In terms of amount, the national revenue increased rapidly from 1.29 billion RMB
in 2001 to 15.10 billion RMB in 2013 (Fig. 7.1). Under increasing standards and
improving collection, this revenue will continue to rise in the coming years. In 2012,
of 12.86 billion RMB collected, 7.02 billion RMB was from surface water fees, 5.75
billion RMB from groundwater fees, and the remainder from other sources (MWR
2013).
During a more than 30-year reforming process, the following issues, all of which
are related to conflicting interests, have been raised:
Debate on fee-to-tax reform. In China, tax is collected by the taxation department
and classed as general revenue and used for general expenditure, while the administrative fee is collected by the relevant department into a special account in the
financial system and utilized for special purposes. Thus, the administrative fee is
a departmental revenue. This issue has been debated twice: first in the late 1990s
0
1
2
3
4
5
6
1990
1995
2000
2005
2010
2015
Urban Water Supply Tariff
Wastewate Treatment Fee
Water Resources Fee
sum
Fig. 7.1 Beijing residential water tariff and regulation in 1990–2014. Unit RMB/m 3 . *The
2014 urban water supply tariff is the first block price. Sources Beijing Development and
Reform Commission
Elaborated by the author, based on Beijing Development and Reform Commission. Permission
granted by Beijing Development and Reform Commission on its website subject to proper citation