Tax preference 1: no business tax. According to the Reply of State Taxation Administration of The People's Republic of China on the Collection of Business Tax on Garbage Disposal Fees (Guo [2005]1128), the garbage disposal services provided by units and individuals are not taxable services of business tax, and the garbage disposal fees obtained by them are not subject to business tax. The "garbage disposal business" in the preferential policies mainly includes domestic garbage, medical garbage, hazardous waste, medical waste and radioactive waste, and the garbage with other names does not belong to the garbage scope referred to in the document [2005]1128.
Tax preference 2: three exemptions and three reductions of enterprise income tax. According to the Enterprise Income Tax Law of People's Republic of China (PRC) and its implementing regulations, the income of enterprises engaged in environmental protection and energy-saving and water-saving projects such as public sewage treatment, public garbage treatment, biogas comprehensive development and utilization, energy-saving and emission-reduction technological transformation, which meet the requirements stipulated by the state, shall be exempted from enterprise income tax from 1 to the third year, and from the fourth year. If the above-mentioned items enjoying tax reduction and exemption are transferred within the tax reduction and exemption period, the transferee can enjoy the tax reduction and exemption for the remaining period from the date of transfer; If the transfer is made after the expiration of the tax reduction or exemption period, the transferee shall not enjoy the preferential tax reduction or exemption for the project repeatedly. For details of the project conditions and scope, please refer to the Notice of State Taxation Administration of The People's Republic of China, National Development and Reform Commission of the Ministry of Finance on Promulgating the Preferential Catalogue of Enterprise Income Tax for Environmental Protection, Energy Saving and Water Saving Projects (Trial) (Caishui [2009] 166).
In addition, Article 34 of the Notice of the State Council on Printing and Distributing the Comprehensive Work Plan for Energy Conservation and Emission Reduction in the Twelfth Five-Year Plan (Guo Fa [2011] No.26) clearly puts forward the provisions on perfecting and implementing the preferential tax policies for the comprehensive utilization of resources and the development of renewable energy, which provides a guiding direction for improving the economic policies for energy conservation and emission reduction.