(ECNS) -- Six enterprises in Beijing, Shanghai and Liaoning Province were fined 2 million yuan ($300,000) each for inflating prices and disturbing the market by replacing business tax with value-added tax (VAT), said the National Development and Reform Commission on July 29.
Using the excuse of replacing business tax with VAT, China World Trade Center charged its tenants in offices and apartments 5 percent more on rent and 6 percent more on property management. Crown Plaza and Ritz-Carlton Hotel in Beijing violated the price law by pushing up the costs for food services, the country's top economic planner said.
Other enterprises that were found to have engaged in the malpractice were Shanghai New World Huaihai Property Management, Shenyang Hanglung Properties and Beijing Xinjie Properties, the NDRC said.
A hotline and website handling price-related complaints and managing information on pricing has received many reports of business infractions since China began to replace business tax with VAT on May 1 as a part of the country's fiscal and tax reforms.
Lu Yanchun, deputy director of the price supervision and anti-monopoly bureau of the NDRC, said the commission has investigated hotels, restaurants, shopping malls and property management companies to protect consumer rights and ensure implementation of the tax reform.
The commission also called on all companies to observe laws and regulations, and forbid fabrication or spreading of false price information.
