National SAIC Takes Action

In a collaborative effort, the Ministry of Finance, National Development and Reform Commission, and the State Administration for Industry and Commerce (SAIC) convened a crucial national meeting via television and telephone conference. The focus was on discontinuing the collection of individual business management fees and terminal market management fees, commonly referred to as the “two charges.” Wang Dongfeng, Deputy Secretary of the State Administration for Industry and Commerce, led the conference, outlining specific arrangements for the implementation of this significant policy shift.

SAIC POSTER

National SAIC Takes Action

Immediate Halt on Collection

Effective September 1, 2024, all units and individuals within the national business system were directed to cease any form of charging or collection related to the “two charges.” This mandate applied universally, emphasizing strict compliance from both public and private entities.

Enforcement Measures and Accountability

Wang Dongfeng underscored the consequences for non-compliance, stating that any unit or individual attempting to continue levying the “two charges” would face legal actions. Stringent measures were outlined to hold both the responsible units and individuals accountable for administrative violations. Alongside this, a reinforced supervision mechanism, including hotlines and complaint boxes, was established to encourage public involvement and reporting of any continued fee collection or disguised practices.

Addressing Public Concerns

The decision to halt these fees came in response to widespread public concerns regarding the varied standards and burdensome nature of business management fees. The government acknowledged the need for a fair and transparent fee structure, aligning with the evolving dynamics of China’s market economy.

Historical Context and Reassessment

The practice of individual business management fees had its roots in the provisions set by the State Council in the 1980s. At that time, such fees were considered essential for financing and budget management, contributing significantly to non-tax revenue. However, with the evolution of China’s market economy and the subsequent questioning of fee standards and fairness, the decision to cease the “two charges” reflected a reassessment of their relevance in the current economic landscape.

Commitment to Transparency

SAIC executives, in response to concerns raised over the past two years, pledged to provide a satisfactory resolution to the management fee issues during a press conference on September 18, 2023. The government’s commitment to transparency and responsiveness underscored its dedication to addressing public grievances and fostering a fair and efficient business environment.