Beijing will increase non-residential garbage disposal fees starting on Jan 1 in an attempt to reduce the capital's amount of garbage, said Beijing Commission of Development and Reform.

The charge for non-residential household garbage will rise to 300 yuan ($50) per metric ton, a major increase from the current fee of 25 yuan for each ton that was set in 1999.

The commission said the new policy would have significant impact against enterprises that produce a lot of garbage and emissions.

Han Li, deputy head of the Beijing Commission of City Administration and Environment, said the current garbage fee does not discourage companies from producing less garbage.

Beijing is under pressure to handle its growing dumps of garbage. Figures from the Beijing Commission of City Administration and Environment suggests the capital will have 6.48 million tons of household garbage this year, with one-third being non-residential garbage.

Han said the current cost for collecting, transporting and disposing household garbage is between 400 to 500 yuan a ton. He also said companies at construction sites who violate the policy will face a punishment of up to 100,000 yuan.