App | 中文 |

Cutting administrative fees to revitalize real economy

Updated: Feb 27,2017 5:47 PM Daily

The State Council has attached great importance to cutting administrative fees levied on businesses this year.

Officials from the Ministry of Finance and the National Development and Reform Commission answered questions about cutting enterprise burdens in January.

The State Council executive meeting on Feb 8 presided over by Premier Li Keqiang also decided to tighten regulations to eliminate fees improperly levied on businesses.

Reducing business fees concerns the economic system and environment, and it should not be ignored.

Since 2013, governments at all levels have been told to find ways to reduce extra charges on enterprises through limits on government-managed funds and administrative expenses.

The central government has removed 496 fees, while local governments canceled more than 600 fees. Administrative fees and the proportion of social insurance paid by enterprises also have been gradually reduced since 2015.

China’s economic growth in 2016 was steady, and corporate performance improved remarkably, which show the effects of reducing business fees and charges. However, some arbitrary charges remain prominent.

In order to revitalize the real economy, business innovation should be encouraged, and reform in major fields should be increased. Further cutting administrative costs for businesses is a key step in tapping the reform’s potential, providing a favorable business environment and stimulating the market.