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China on its way to cutting 1t yuan in enterprises costs

Xu Wei
Updated: Jun 7,2017 9:21 PM

A decision was made to cut fees paid by enterprises during a State Council executive meeting chaired by Premier Li Keqiang on June 7.

Premier Li said in the Government Work Report this year that China will take multiple measures to cut costs for companies, leave no stone unturned and make structural tax cuts pay off as much as possible and create a straightforward, transparent, and fairer tax regime.

It was decided at the meeting that the country will reduce construction assurance deposit standards. Also canceled is an industry restructuring charge that is ultimately levied in power bills.

The country will also put on hold industry oversight charges levied on banks and other financial institutions, and reduce the fees charged by public security departments for licenses they issue.

Premier Li said too many charges have weighed down businesses too much. The country is on its way to delivering on its promise to slash costs by 1 trillion yuan ($147.1 billion) this year, he said.

Measures rolled out by the central government earlier this year has already cut taxes and fees by about 718 billion yuan, which, combined with the latest move, is meeting the target.

Premier Li said the central government will keep slashing nontax burdens and completely overhaul charges levied by the government.

All government departments and agencies concerned should put the overall interests ahead of their own by reducing burdens on enterprises, and forging a new competitive edge in China, he said.

The Ministry of Finance will make public on its website a list of the administrative charges levied by the central and local governments before July. The National Development and Reform Commission will also make public all the government-set fees for public services on its website before the end of this year.

“The 1-trillion yuan cost cut is no easy task, but must be delivered in full.

“Government departments and agencies should keep the bigger picture in mind and take concrete measures to reduce the burdens on companies, and energize businesses and make China an even more inviting destination for investment,” Premier Li said.