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  To Abolish the Administrative Fee on Individually-Owned Business and the Protection on the Market Entities For Their Equal Rights

There are 20 million individual-owned business in China, who are the product of Chinese transformation from planned economy to market economy. They are as whole in the form of family, have minor employers and their registered capital is lower. Therefore they don’t belong to the corporation that was written in the Corporation Law.


Other than the ratepaying, the individual-owned business in China have to pay the Administrative Fee to the government.


In one way, individual-owned business in China can help to solve the employment problem and they are an important group of tax payers. In anther way, they have to bear plentiful administrative fee that is as much as the tax.   


The problems lie in the following:

⑴In China the private enterprises and the stated enterprises don’t pay the Administrative Fee which causes the discrimination between the market bodies

⑵The basis of the administrative fee is The Administration of The Individual-owned business In cities And Countryside which was promulgated on April 5th,1985 by the State Council. This statue has been in effect for 20years and no longer accords with the current social situation. In addition, the fee collection should base on the law but not the statue promulgated by the State Council because of its lower rank. Hence we can say that the collection of Administrative Fee is illegal.

⑶The standard of fee collection is not uniform and that where the fee collected goes is unknown.


         More than 50 attend the conference. The attendees include scholars, lawyers, journalists and owners of individual-owned business. They discuss with the central topics including the rationality and validity of the administrative fee, the validity of the bureau of industry and commerce and the necessity of its existence during the conference.


Three conclusions are reached during the conference including:


              I.         There is no legal basis for the administrative fee. The fee is against the state’s policy. Actually, it is discriminatory treatment to the individual-owned business. It makes a heavy burden on them and results to the difficult situation for the development of the Chinese individual-owned business. The number of the individual-owned business decreased in recent years. It is no good for the development of the market economy and it providing fewer jobs than before. So we suggest abolishing this administrative fee in the nation wide.


           II.         The Administrative Bureau of Industry and Commerce is established on the basis of the order issued by the temporary division during the period of planned economy. It is founded without legal basis. Its power from the documents promulgated by itself in other words “self-granted”. The purpose of the establishment is to prevent the earlier society from the market economy and to eliminate the free trade. Nowadays, the bureau still uses the administrative method to intervene in the market supervision. It seriously blocks the development of the market economy. The extreme centralized power causes many cases of corruption. So we suggest abolishing the Administrative Bureau of Industry and Commerce.


        III.         Each year, the use of tens of billions money collected as the administrative fee is not clear. Suggest checking up the fee and publishing the report to the public.

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