Abstract: Environmental protection tax is an effective means to solve environmental problems. The current environmental protection tax system in China has low tax rates and other issues, making it difficult to fully exert its environmental governance capabilities. Jiangsu Province still has room for improvement in the ecological environment, and raising the environmental protection tax rate is also conducive to improving the quality of the ecological environment. In this research, the 2018 environmental and social accounting matrix for Jiangsu Province was constructed, a dynamic CGE model was used to refine the impact of environmental protection tax collection on the economic system, and the impact of the current environmental protection tax rates of 2, 3 and 4 times in 2018-2030 on Jiangsu Province was analyzed. The results indicated that levying higher environmental protection taxes could increase environmental protection taxes in Jiangsu Province, reduce pollutants and carbon dioxide emissions, which have a synergistic effect of reducing pollution and carbon dioxide. However, the increase in environmental protection tax rates would also have a negative impact on Jiangsu Province's GDP, corporate and resident income, and exports, and the tax burden is mainly transferred to residents. Therefore, it is recommended that Jiangsu Province increases environmental protection tax rates reasonably and scientifically in combination with economic development goals and environmental protection needs. Jiangsu Province could also use some of the environmental protection tax revenue to establish pollution reduction and carbon reduction funds, improve pension levels and provide subsidies for export products, which would improve the quality of the ecological environment and reduce negative impacts on the macro economy.