Chinese firms could save more than 140 billion yuan (23 billion U.S. dollars) each year after the government eliminated unreasonable administrative fees on enterprises, authorities said on Thursday.
Relief measures by the central government and local authorities will cut companies' burdens by more than 40 billion and 100 billion yuan respectively, with small firms expected to benefit the most, according to a report compiled by China Center for Promotion of SME Development under the Ministry of Industry and Information Technology (MIIT).
Given sagging economic growth, China has been striving to alleviate burdens for companies in a bid to help them weather economic hardship and pump vitality into the market. Unreasonable fees that had been collected for years were eliminated.
Following the removal, collection has become more straightforward, with charges reduced and random fees eliminated, the report said. The central and local governments published their much-shortened lists of remaining fees in January.
However, the report pointed out exorbitant fees still exist in monopolized and there are fees collected secretively, with procedures still opaque.
"For example, banking fees are not transparent enough. Some banks charge unreasonable guarantee and consulting fees in disguised forms when making loans, which adds to funding costs of companies," said Qin Zhihui, the center director.
Financing costs for small and medium-sized companies could climb to 15 to 20 percent, Qin said, which is much higher than official benchmark lending rates.
The report advised the government to continue cleaning fee collection and urged acceleration of new laws on the matter.
The MIIT announced it will cancel "non-administrative approval" as part of its effort to cut red tape on Thursday.
