25 July 2016
China Announces Inspection Plan to Clean up Enterprise-related Charges
The Ministry of Finance (MOF), National Development and Reform Commission (NDRC), the Ministry of Information and Technology and the Ministry of Civil Affairs have recently issued an enterprise-related charge items clean-up inspection plan to carry out and implement the Circular on Further Improving the Work on Private Investment Promotion issued earlier by the State Council’s General Office, in a bid to further strengthen the management of enterprise-related fees, reduce the burden on enterprises and promote the development of real economy.
The scope of item inspection includes enterprise-related administrative and business charges, and (contributions to) government-controlled funds imposed by executive authorities, public service units and social organisations undertaking administrative functions of the government; mandatory and monopolistic type of enterprise-related charges including preparation for administrative approval, fees involving market supervision and access; as well as enterprise-related charges imposed by trade associations and chambers of commerce.
The plan puts forward that key inspection is to be carried out on administrative fees and government-controlled funds items the state explicitly cancels, suspends, exempts, or lower the fees, but fail to be in place; paid fund items created, fee level raised, scope of the collection expanded without authorisation contrary to administrative fees and government-controlled fund approval regulations; various types of audit, annual inspection and verification reports requested irregularly on enterprises by government departments and their subordinate units, increasing the burden on enterprises; other irregular charges met with strong response from enterprises.
The item inspection is to ensure that the state's general fee cutting policy to take root, fees having been abolished no longer be charged and charges having been reduced be in place; various arbitrary charges to be contained, reducing the cost burden of enterprises in practical terms; establish scientific standard, open and transparent management system on enterprise-related charges need to be retained; study and propose further policy measures to accelerate the establishment of a sound regulatory mechanism.
Meanwhile, the inspection will be divided into the three stages of self-examination and self-correction (15 July-15 August), field inspection (16-31 August) and rectification (1-30 September). Finally, the MOF and NDRC will announce policy measures to cancel, adjust and regulate enterprise-related charges according to the self-correction and on-site inspections of various provinces (autonomous regions and municipalities).