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China announces new corporate burden cuts

Xinhua | Updated: 2017-06-08 08:05

BEIJING - The State Council, China's Cabinet, on Wednesday announced new cuts to charges on companies, which will reduce their burden by 283 billion yuan ($41.7 billion) each year.

The new measures, which will take effect July 1, are part of the government's efforts to reduce corporate costs by 1 trillion yuan this year, according to a statement following a State Council executive meeting presided over by Premier Li Keqiang.

The country will reduce the upper limit for construction quality guarantee deposits from 5 percent to 3 percent, cancel or reduce the government's additional charges on electricity use, cut six items of administrative and institutional charges, and suspend supervision fees for the insurance and banking sectors, the statement said.

The government will step up supervision and inspection on the implementation of policies to cut corporate burdens to help companies enjoy the benefits, according to the statement.

Governments at all levels should compile lists for charges and fees on companies, the statement said.

Before July 1, departments under the State Council must publish online the lists for central and local government funds as well as administrative and institutional charges.

Meeting participants also decided to create new demonstration bases for mass entrepreneurship and innovation after the country announced the first group of pilot bases last year.

Local authorities should build a sound policy environment to promote entrepreneurship and innovation, the statement said.

They should streamline administrative approvals, delegate power to lower levels and encourage professional approval services in the demonstration zones, it said.

China will also build low-cost and open centers for makers, improve preferential policies for startups and innovation, and strengthen intellectual property rights protection, the statement said.

A draft regulation on voluntary services was also approved at the meeting.

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