In recent years, China has faced significant downward economic pressure amid intensifying global geopolitical conflicts, rising trade protectionism, coupled with the impacts of domestic industrial restructuring and the "long-tail effect" of the pandemic. Insufficient domestic demand, operational difficulties for enterprises, and mounting pressure on public employment and income growth have become the country's major challenges. In 2025, China's Consumer Price Index (CPI) remained sluggish with zero year-on-year growth; the Producer Price Index (PPI) fell by 2.6% year-on-year, staying in contraction for the 39th consecutive month, putting the economy under severe deflationary pressure. Expanding consumption and boosting domestic demand have thus become the top priority. At this year's Two Sessions, Liu Hanyuan, a deputy to the National People's Congress (NPC), Vice Chairman of the All-China Federation of Industry and Commerce, and Chairman of the Board of Directors of Tongwei Group, put forward relevant proposals on optimizing tax policies for photovoltaic (PV) power generation land use.

"As a strategic emerging industry in China and the main force driving energy transition, the PV sector is also grappling with the aforementioned issues," Deputy Liu Hanyuan noted. Against the backdrop of prioritizing consumption expansion and domestic demand stimulation, he emphasized that tax authorities should roll out larger-scale tax and fee reduction measures to invigorate market vitality, ease corporate burdens through more targeted support policies, grant enterprises breathing space, underpin economic development, and serve the overall national interests.

Tax policies for PV land use have long been unclear, with inconsistent implementation standards across regions. Calculations show that the burden rate of the "two taxes" (cultivated land occupation tax and urban land use tax) for PV power generation projects—defined as the ratio of "two taxes" payable to total project revenue—peaks at 40–45% when calculated based on the total leased land area; it stands at 25–30% when calculated by PV array area, and 10–15% when calculated by projection area. These figures exclude tax late fees imposed by some local authorities on retroactive collection for projects. Levying taxes under such standards would impose an unbearable fiscal burden on PV projects, far exceeding their actual capacity. This policy shift from "encouragement and support" to "strict collection and management" has not only undermined policy continuity and stability but also eroded government credibility and shaken enterprises' confidence in long-term investment and strategic layout. Based on the above analysis, Deputy Liu Hanyuan put forward the following proposals:

First, optimize land tax policies, clarify tax calculation standards as soon as possible, and improve collection procedures. He suggested that relevant national ministries and commissions promptly study and define key policy implementation guidelines for PV power stations, including the occupied area and duration for cultivated land occupation tax and urban land use tax. It is also proposed to establish and smooth information exchange mechanisms between departments such as natural resources, agriculture and rural affairs, and tax authorities, refine collection procedures, and enhance the certainty of land use and tax policies. For integrated PV projects such as "agriculture-PV complementarity" and "fishery-PV integration," taxation should be based on the area of pile foundations.

Second, clarify that PV power generation projects shall continue to enjoy the "three-year exemption and three-year half reduction" preferential tax policy. The shift of PV power generation projects from government "approval system" to "filing system" stems from the optimization of administrative approval methods driven by the upgrading of governance concepts. However, this does not alter their nature as public infrastructure, nor does it diminish their vital role in advancing the energy revolution and realizing the "Dual Carbon" goals. Therefore, such projects deserve to continue benefiting from this preferential policy to safeguard enterprises' legitimate rights and interests.