The collection of green tax could promote the construction of ecological civilization, as it establishes a green system to encourage companies to reduce the emission and protect the environment. In 2018, China begins to carry out its green tax reform. According to the law, it is estimated that the scale of green tax collection could reach 50 billion yuan (7.88 billion dollars) this year. This paper aims to analyze the different effects of this reform on polluting companies and green companies. From an accounting perspective, the focus of this paper is to propose new accounting entries and make the product price include the tax. This would help the companies to find the source of pollution, emit less pollutant, and develop its environmental technology; implementing these accounting entries will accelerate the construction of an ecological civilization.
Keywords:Green tax, Accounting entry, Environmental protection, Ecological construction.