The State Council executive meeting on Jan 27 presided over by Premier Li Keqiang decided to cancel a series of fees for government-controlled funds in a bid to relieve corporate burdens.

Cost reduction for enterprises has been a major focus for restructuring the economy this year. However, it remains a difficult task as a report in 2015 showed that 52 percent of surveyed enterprises have been suffering heavy tax burdens.

Confronted by the tough situation, the State Council decided to lower the price of coal-fired electricity from the beginning of this year, which has curbed the cost for enterprises. In addition, the government has also abolished a series of administrative examination and approval items.

The meeting also agreed to reduce the standards of charge for new vegetable field development and construction fund and the afforestation fund to zero, merge seven similar government funds such as the support fund for reservoir emigrants, and eliminate illegal funds set up by local governments.

Moreover, the bar for tax payers’ exemption of education surcharges and water conservancy construction fund will be raised from the previous monthly sales income of less than 30,000 yuan ($4,560) to less than 100,000 yuan.

Under the pressure of the economic downturn, the reduction of tax and fees has been especially crucial because corporate sales will be unlikely to improve in a short period. Therefore, the government has to assist enterprises to cut cost and generate space for profit.