The State Council decided on April 8 to adopt a series of measures including canceling and regulating enterprise-related fees to ease the burden on companies and support the development of the economy.
The measures, which include lowering the on-grid price of electricity generated by coal-fired power and the electricity price charged on industrial and commercial businesses, and appropriately lowering the resource tax on iron ore, were proposed at an executive meeting presided over by Premier Li Keqiang.
According to a statement released after the meeting, the further reduction of taxation and fees is an important move that will give a full play to positive fiscal policies and invigorate the market.
The State Council decided to carry out a half-year special campaign that comprehensively clears up administrative fees and governmental funds that relates to enterprises nationwide.
---Supervision will be conducted over more than 600 items charges that central and local governments have decided to cancel, suspend or reduce last year. Special attention is required to be paid on implementing policies about the taxation and fund reduction concerning small- and micro-size businesses, service industry, affordable housing, and the employment of college graduates.
---Enterprise-related fees and project funds that are unapproved and not based on laws and regulations should be canceled.
---Intermediary services and charges involved with administrative approvals that have no legal basis should be canceled.
---Governmental funds that have little policy effect and do not adapt to the demands of market and economic development will be canceled, while overlapped funds will be cleared.
---A list of the remaining enterprise-related fees after the campaign will be set up and released to the public. No charge should be applied to items beyond the list.
The State Council also decided to lower the on-grid price of electricity generated by coal-fired power and the electricity price charged on industrial and commercial businesses.
The measure was aimed to reduce the cost of businesses, stabilize market expectations, promote economic growth and carry out industrial adjustments, according to the release.
---The on-grid price of electricity generated by coal-fired power across China will be lowered by 0.02 yuan per kilowatt hour.
---Commercial businesses and industrial ones will enjoy the same electricity price. The electricity price of nationwide industrial and commercial enterprises will be lowered by about 0.018 yuan per kilowatt hour.
---The structural conflict between the price of electricity generated by gas power and price of green electricity will be appropriately eased at a time of electricity price reduction, to promote energy conservation and emission reduction, as well as controlling air pollution.
The State Council announced a big cut on iron ore taxes to improve the production and operation environment of iron ore companies, push for structural adjustment, support coordinated development and upgrade upstream and downstream industries and safeguard national resource supply security.
---The resource tax on iron ore will be lowered to 40 percent of the current standard since May 1.