Legal analysis: There are two main types of sewage treatment fees charged by sewage treatment plants. One is the sewage treatment fee charged by waterworks (companies) entrusted by governments and competent departments at all levels, and the other is the sewage treatment fee paid by some enterprises and individuals for centralized treatment of production or domestic sewage. This part of the sewage treatment fee will be subsidized by the state. For sewage treatment enterprises, the state has tax preferences in value-added tax and enterprise income tax.

Legal basis: Measures for the Administration of Collection and Use of Sewage Treatment Fees

Article 3 Sewage treatment fees are funds paid by drainage units and individuals in accordance with the principle of "polluter pays", which are used exclusively for the construction and operation of urban sewage treatment facilities and the treatment and disposal of sludge.

Article 4 The sewage treatment fee belongs to the non-tax revenue of the government, and shall be turned over to the local treasury in full, incorporated into the budget management of local government funds, and used for special purposes.