Cutting Taxes & Fees: Chinese government aims to stop illegal fees levied on firms
The Chinese government cut taxes and fees by more than one trillion yuan in the first half of this year. Now it's promising to put an end to illegal fees levied on businesses. CGTN's Wang Hao has more.
In 2019, China took a series of actions to cut taxes and fees. According to official data in the first half of the year, that resulted in a reduction of taxes to the tune of 1.17 trillion yuan. The private sector saved around 670 billion yuan, accounting for 65% of the total tax cuts. The new policy energized the market and enhanced enterprise's vitality. Fixed-asset investment in the high-end manufacturing sector rose by 9.9 percent year on year. Now the government says it will step up efforts to remedy illegal fees levied on businesses.
GAN LIN, VICE MINISTER STATE ADMINISTRATION FOR MARKET REGULATION "In terms of quantity, tax cuts give companies more incentives than fee reductions. However, if illegal fees levied on business cannot be dealt with, it will reduce enterprises' trust in the tax cuts and fees reduction policy, influencing its implementation."
New measures to stop illegal fees have been proposed. Government departments and bank branches will be required to check if they are imposing such fees. And they will also have to strengthen transparency for the fees they charge businesses.
GAN LIN, VICE MINISTER STATE ADMINISTRATION FOR MARKET REGULATION "Local governments must publicize the items entrusted by the government-trusted intermediaries, and government-affiliated institutions must announce the items, standards and basis for those fees."
The government sees economic restructuring as essential to the goal of high-quality development. But that process needs a great amount of capital to optimize and upgrade the industrial structure, and transform production technology. Eliminating illegal fees levied on business will further ease their burden. And that will free up more funds to invest in research & development, and improve the quality of products.