China's Environmental Protection Tax Law took effect on January 1st this year. The new green tax law ended the country's decades-long policy of pollutant discharge fees. And the first taxation season will start in April. Over 300,000 confirmed tax payers across China will have to pay the new tax rate. An estimated total of 50 billion yuan in taxes will be collected this year. Our reporter Hu Chao takes a look.

Located on the outskirts of Pingyao County in north China's Shanxi Province, this chicken farm keeps around 250,000 chickens for their eggs. The company head said one hen costs around 4 cents for its pollution. But upon implementation of the local green tax rates, set by the provincial tax bureau according to the national tax rate range, now one hen will cost around 7 cents for its pollution. That's an increase of 75%.

The company head believes there might be a price rise in the industry in the future.

JI GUOQING, CHAIRMAN GUOQING TONGYING POULTRY CO. "I know the green tax is a good thing. But I think the rising cost will lead to a price rise in the poultry industry. I'm also worried smaller poultry companies who don't have to pay the tax will have a better price advantage in the market."

This poultry company is one of the 8,650 companies and public institutions in Shanxi who will have to pay the new green tax from April. And the country allows different provinces to set up their own tax rates within the range given by the law.

HU CHAO TAIYUAN, SHANXI PROVINCE "The law works on the principle of more tax for more pollution and less tax for less pollution. Experts say the tax will force companies to improve their environmental protection measures."

WEI HULIN, DEAN OF BUSINESS ADMINISTRATION INSTIT. SHANXI UNIVERSITY OF FINANCE & ECONOMICS "The implementation of the green tax law will push companies to invest more in environmental protection and technology innovations. Those backward companies who produce heavy pollution will be forced to leave the market. The tax will help both the environment and the economy to develop healthily."

Professor Wei also pointed out that a price rise in related industries is not likely to happen.

WEI HULIN, DEAN OF BUSINESS ADMINISTRATION INSTIT. SHANXI UNIVERSITY OF FINANCE & ECONOMICS "In fact, the environment tax only takes a small proportion in the total tax paid by a company. It's not likely to cause a price increase in the industry. But some companies might be affected by the green tax. Related authorities have been working on solutions to tackle the problems."

Hu Chao, CGTN, Taiyuan, Shanxi Province.