Life of Guangzhou - Fees Scrapped to Help Economy

The Central Government announced yesterday it would scrap 100 administrative fees as part of ongoing efforts to reduce the cost of businesses struggling to cope with the global economic recession.

This would save 19 billion yuan (USD 2.79 billion) annually for companies and individuals, Xinhua said yesterday, citing officials with the Ministry of Finance.

The decision was announced by the ministry and the top planning agency, the National Development and Reform Commission.

The exemptions, which take effect from Jan. 1, 2009, cover fees on education, employment, practicing qualifications for professionals, construction, export, medicine production, animal and poultry farming, and agriculture. From Sept. 1, management fees on farm produce markets and self-employed business people were exempted, saving 17 billion yuan a year in fees for markets and individuals.

The government apparently hopes the fee exemptions will encourage consumers to spend more. The fee exemptions were just part of a recent flurry of measures to boost the economy, which highlight the dire world economic outlook and the swift response by the Chinese Government.

After a meeting chaired by Premier Wen Jiabao yhesterday, the State Council announced that the government would continue to raise export tax rebates for textiles, apparel and some light industry products as part of increased efforts to ease the tax burden on companies in those sectors.

Financial support from the government and banks for the textile sector and light industry will be increased, and the government will give subsidies to farmers to buy home appliances to help stimulate demand.

Yesterday's measures were apparently aimed at boosting domestic consumption and exports. Light industry, which is more oriented toward consumers, includes the manufacture of clothes, shoes, furniture and household items.

China has announced increases in export tax rebates for a range of goods three times this year, in a bid to help struggling exporters weather weakening global demand.

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