New Environmental Policies Implemented! Powder Coating Industry Benefits from Dual Tax Exemption Policies, Accelerating the 'Paint-to-Powder' Transition

On November 3, 2025, the 18th meeting of the Standing Committee of the 14th National People's Congress voted to pass the Decision on Amending the Environmental Protection Tax Law of the People's Republic of China, bringing a heavyweight policy gift package to the powder coating industry. The new policy clarifies that powder coating, due to its zero VOC (volatile organic compound) emission advantage, can not only continue the 4% consumption tax exemption policy for low VOC coatings, but also achieve "full exemption of environmental protection tax" in the upcoming VOCs environmental protection tax pilot, becoming a direct beneficiary of policy dividends.

It is reported that the VOCs content in the powder coating construction state is only 0.5g/L-9g/L, far below the tax-free red line of 420g/L. This core advantage has enabled it to obtain a "double tax-free" pass. Compared with the VOCs pollution discharge fee standard of 40 yuan/kg in Beijing and other places, powder coating enterprises with an annual production capacity of 10000 tons can save millions of yuan in additional costs each year, without the need to invest in end of pipe treatment facilities such as activated carbon adsorption and RTO incineration, achieving the goal of "meeting the standard and saving money".

The implementation of this new policy cannot be separated from the continuous promotion of the Powder Coating Coating Branch of the China Coatings Industry Association over the past three years. The branch collaborates with leading industry enterprises to complete SGS full process testing, providing core basis for policy exemptions based on measured data. At the same time, it leads the organization of technology summits, participates in industry standard formulation, and builds a bridge for communication between government and enterprises. With the accelerated implementation of environmental tax pilot projects, the cost advantage of powder coating will be further highlighted, which is expected to significantly accelerate the process of "paint to powder" transformation in the industrial field and promote high-quality development of the industry.

Industry insiders say that the new policy will further stimulate the enthusiasm of small and micro enterprises and individual operators to adopt powder coating technology, while promoting top enterprises to increase research and development investment, expand emerging application fields such as new energy vehicles and photovoltaics, and inject new momentum into the development of the industry.