China will collect an estimated 17 billion yuan (US$2.2 billion)
after-tax profits from central state-owned enterprises, in a trial
return of profits from SOEs, the online version of Caijing
magazine has reported, citing sources with the Ministry of
Finance.
This move, starting from October, was initiated by a State
Council proposal on budgeting of state assets, issued on September
14.
The government will collect 10 percent of the after-tax profits
of enterprises in oil and chemical, telecommunications, coal, power
and tobacco industries. Other central enterprises shall hand in 5
percent of their after-tax profits, while scientific research
institutions and military enterprises are exempted for three
years.
China's state-owned enterprises reported profits of 1.2 trillion
yuan (US$159.6 billion) last year, with the total after-tax profits
reaching 625.2 billion yuan (US$83.1 billion). The central SOEs had
profits of 754.7 billion yuan (US$100.4 billion), of which almost
70 percent was contributed by nine large corporations, such as
China National Petroleum Corporation (CNPC), China Telecom, and the
State Grid.
The ministry will collect half of the required profits from 2006
on a trial basis this year, an estimated 17 billion yuan (US$2.2
billion).
"We only collect a small proportion of the profits, and the
remaining part will be sufficient for the enterprises to carry out
their reform and development plans," said the ministry.
The policy will be officially implemented from 2008.
Since 1994, central state-owned enterprises have retained all
their profits in their own coffers.
There are 168 central enterprises under the supervision of the
State-owned Assets Supervision and Administration Commission.
(Xinhua News Agency September 20, 2007)
