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The Chinese government is to abandon official charges that may discourage consumption, in a fresh move to stimulate domestic demand, the Ministry of Finance announced Monday.
A ministry official said the government will sort out various fees that local authorities charge on the purchase and use of automobiles, rectify official charges on residential housing construction.
The ministry urged local authorities to carry through the policy of giving tax deductions and exemptions to laid-off workers, saying it will weed out arbitrary charges affecting the payment of workers' wages.
The official said the Chinese government will abolish all administrative charges that are in conflict with the country's WTO agreement and the establishment of a uniform domestic market.
To this end, the government will clear market places of wanton charges by officials and rectify the construction and public bidding sectors, which are rife with irrational charges.
While continuing to experiment with the tax-for-fee swap in rural areas of the country, the government will push ahead with a national campaign aimed at increasing farmers' incomes by reducing the total amount of official charges on them.
The government will stop some projects that call for contribution to governmental funds, give tax incentives for restructuring enterprises, and eliminate wanton charges on road building in western areas of the country, to create an environment favorable to enterprises' business operations.
(People's Daily April 2, 2002)
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