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Cutting administrative fees bolsters confidence in market

Updated: Feb 10,2017 7:52 AM

Premier Li Keqiang holds a symposium on Jan 13 to seek more suggestions from experts and business leaders on the draft government work report for 2017. [Photo/China News Service]

Cutting administrative fees levied on businesses will increase confidence in the market, according to China Business Network (CBN), a Chinese business media, on Feb 9.

On Feb 8, the State Council executive meeting decided to further reduce and regulate business charges to reduce corporate burdens.

Last year, the value-added tax (VAT) reform cut over 500 billion yuan ($72.8 billion) in taxes. But companies still feel pressure, and they complain about too many unreasonable administrative fees.

A company has to deal with multiple government departments, each with its own fee, intermediary agencies and many extra fees, which raises corporate costs and harms market equality, said Premier Li Keqiang at the executive meeting.

In addition, cutting fees will help build a fair market and clarify the boundary between government and market.

Market economy is a system that abides by the rule of law, so authorities should not be allowed to charge fees randomly, the Premier said.