To deal with worsening smog, Tianjin will raise pollution discharge fees drastically starting July 1.

Under a new policy, discharge fees for four major water and air pollutants - sulfur dioxide (SO2), nitrogen oxide, chemical oxygen demand (COD) and ammonia nitrogen - will be increased on a seven-level sliding scale based on the amount of pollution discharged. The more a company pollutes, the more it has to pay, up to a maximum ceiling, officials said.

For example, fees for SO2 emissions will rise from 1.26 yuan (20 US cents) to a maximum of 6.3 yuan per kilogram, while fees for COD discharge will rise from 0.7 yuan to a maximum of 7.5 yuan per kg.