The tax rate of water conservancy construction fund is 1%. Since 2023, the applicable tax rate under certain circumstances has been lowered to 0.5%. Different regions may have different preferential tax policies, so the specific tax rate may vary from region to region. Usually, the water conservancy construction fund is calculated according to a certain proportion of the value-added tax and consumption tax actually paid by taxpayers according to law. Water conservancy construction fund is a government fund dedicated to water conservancy construction, which consists of central water conservancy construction fund and local water conservancy construction fund. The central water conservancy construction fund is mainly used for the maintenance and construction of major river key projects related to the overall national economic and social development, while the local water conservancy construction fund is mainly used for urban flood control and the management, maintenance and construction of small and medium-sized rivers and lakes.