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Fee reduction benefits all

Updated: Aug 16,2018 8:06 AM

As Premier Li Keqiang stated at a press conference during the two sessions this year, the government shall work hard to cut fees to better benefit enterprises.

In 2017 alone, the lump sum of fees cut nationwide reached beyond 190 billion yuan ($27.5 billion), greatly boosting the opportunity for enterprises to burgeon and develop far and wide.

Substantial reduction in non-tax burdens retains its significance in this year’s government work. A 300-billion-yuan fees reduction target was set for 2018, while improper fee-charging items, including unreasonable or exorbitant ones, will be phased out.

Fee-reduction that benefits enterprises

To fulfill the aim of reducing fees, the government will further reorganize administrative items that are charged a fee and lower fee collection benchmarks for certain governmental funds; continue with periodical reduction on the chargeable proportion of enterprises’ insurance payments and housing funds; deduct charges generated in the power grids’ link of electricity distribution and lower the price of power transmission and distribution; deepen reform of the toll-way system; cut road tolls and pontage and cement the purge of inappropriate agency fee items. Other measures also are in place.

As for periodical reduction on the chargeable proportion of enterprises’ insurance payments and housing funds, policies regarding reduction on basic endowment insurance’s chargeable proportion, unemployment and work-related injury insurance will stay valid until April 30, 2019. Policies on shrinking the proportion of housing funds deposit will remain applicable until April 30, 2020.

The government also will further improve the cash deposit system for migrant workers engaged in construction projects, with bank guarantee letters actively populated.

Additionally, the enterprises will be entitled to more benefits in this regard. Employment security funds for the disabled paid by enterprises will see the upper limit be lowered from less than three times the local average wage to less than twice. Charges for logistics, energy consumption and other items will stay under stringent regulation. There will be a guaranteed 10 percent reduction on the price of electricity for average industrial and commercial enterprises.

Fee collection thresholds for significant water conservancy construction projects witnessed another 25 percent reduction on the basis of the prior reduction as of July 1. And there was a further extension of the duration of the reduction on patent annuities as of Aug 1, accompanied by the annulment of patent registration fees.

Fee cuts that benefit citizens

Citizens also are beneficiaries of the fee-reduction polices. April 1 marks the end of the cost of production for initial identity card applications, and July 1 was the milestone for the annulment of the domestic roaming charges for mobile data allowance.

In addition, a string of fee cut policies are coming to the fore, highlighting a no higher than 30 percent reduction on rates for mobile internet services, a 30 percent decrease in household broadband charges, and a further deduction in roaming charges generated from mobile network utilization in Hong Kong, Macao, Taiwan and overseas.

It’s worth noting that Premier Li urged clearance of unreasonable agency fee items on June 28 during a videophone conference centered on streamlining administration and delegating powers. Charges from chambers of commerce in institutions and industries will be further supervised and regulated.

Fee reduction also sits high on the agenda of the inspection of the State Council, which commenced on July 10. Charges of all kinds will be meticulously inspected, in a bid to facilitate the development of enterprises and promote the wellbeing of citizens.