Some plastics recyclers in China are facing a new taxation method - taxes will be calculated and collected based on a company's electricity usage instead of reported business revenues.

Tax authorities in Wuning, Zhejiang province, believe this will be a good solution to problems caused by plastics recyclers, especially small shops, failing to report revenues truthfully, according to the Dongyang Daily.

Two different formulas have been developed: one for those that sort and clean the scrap, and one for those that reprocess the waste into pellets.

I wonder how accurate and effective the formulas are, but no details are available. If this new method proves to effective, it will likely to be adapted in other regions.