Tackle grassroots arbitrary fees

The Ministry of Finance and the National Development and Reform Commission jointly issued a notice that abolished 30 government fees nationwide, such as the production costs of tax invoices and household registration booklets. This action will save people and companies about 10.5 billion yuan ($1.68 billion) a year, says an article in China Business News. Excerpts:

The action's symbolism is more important than its practical effects. The notice is a clear message from central authorities on the transformation of government functions.

Since 2008, the central government has canceled 182 kinds of national-level administration fees, and nearly 180 billion yuan has been saved. Last year, 253 kinds of provincial-level fees were canceled, saving enterprises about 10 billion yuan a year.

Reducing administration fees is a necessary action to set the boundaries for government revenue and relieve enterprises' and residents' financial burdens.

Some arbitrary fees enforced by grassroots authorities should also be addressed in this round of reform. Some fees are set up only to increase a local government's revenue. The problem is especially serious in the countryside and relates to agricultural production. The autonomy rights and the absence of supervision are the root causes of arbitrary fees.

It is easy to abolish a national-level fee, but quite difficult to cancel a village fee.