Cab­i­net to is­sue list of ap­proved busi­ness charges

China Daily (Canada) - - BUSINESS - By ZHENG YANGPENG zhengyang­peng@chi­nadaily.com.cn

China is mov­ing to ease com­pa­nies’ fee bur­dens as the econ­omy cools.

The State Coun­cil, the na­tion’s cab­i­net, onThurs­day is­sued a doc­u­ment cov­er­ing the fees im­posed on en­ter­prises. It is the first doc­u­ment cov­er­ing this topic since 1997.

The govern­ment said it will draw up a list of ap­proved fees so com­pa­nies can avoid pay­ing ones il­le­gally charged by in­di­vid­u­als con­tend­ing they are col­lect­ing of­fi­cial charges.

The work should be com­pleted by the cen­tral and lo­cal gov­ern­ments be­fore the end of this year, Min­is­ter of In­dus­try and In­for­ma­tion Tech­nol­ogy Miao Wei said on Thurs­day in a video­con­fer­ence.

Chi­nese com­pa­nies, es­pe­cially mi­cro­sized and small en­ter­prises, of­ten find them­selves pay­ing oner­ous and ir­reg­u­lar fees. These fees, along with var­i­ous taxes, have im­posed a heavy fi­nan­cial bur­den on smaller com­pa­nies.

The govern­ment will also be “pru­dent” about in­tro­duc­ing newfees or other charges. It will also reg­u­late fees that cover ser­vices re­lated to pre-en­try ad­min­is­tra­tive ap­provals.

“Our sur­vey showed that ir­reg­u­lar fees and fines col­lected from en­ter­prises have de­clined in re­cent years. But a new trend is that many in­ter­me­di­ary agencies charge ser­vice fees to firms us­ing their ad­min­is­tra­tive re­sources,” Miao said.

Liu Xiaobin, an of­fi­cial with the Na­tional De­vel­op­ment and Re­form Com­mis­sion, said en­ter­prises have com­plained that govern­ment-af­fil­i­ated in­dus­try as­so­ci­a­tions im­pose com­pul­sory “ser­vice fees” claim­ing that these charges cover the cost of pro­vid­ing tech­ni­cal and pric­ing ad­vice. He said these charges will be dropped by the govern­ment.

Of­fi­cials have made it clear that these ef­forts are in­tended to coun­ter­bal­ance the slow­ing econ­omy and re­form the role of the govern­ment.

In July 2013, China scrapped taxes for small com­pa­nies as part of a drive to boost the slow­ing econ­omy.

As of April this year, com­pa­nies with an­nual tax­able rev­enue of less than 100,000 yuan have been able to have their cor­po­rate in­come tax halved. The thresh­old was pre­vi­ously 60,000 yuan.

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