China's environmental tax plan has been submitted to the State Council, according to media reports. If passed, the tax may have an impact on China's manufacturing costs and competitiveness.

The news came from a spokesman for the China Petroleum and Chemical Industry Association, according to a Reuters report.

The tax is likely to be levied on emission of carbon dioxide, waste water, solid waste and sulfur dioxide, Chinese media reported.

Three Chinese ministries have been leading the initiative, including the Ministry of Finance, the Ministry of Environmental Protection and the State Administration of Taxation. But other agencies, such as the Ministry of Water Resources, also are involved.

Presently, China levies a pollutant discharge fee. But the public has grown increasingly concerned with the rapid environmental degradation and over-exploitation of natural resources.