China warns localities not to use fines for funds, pledges ‘strict’ regulation
- Beijing tells local governments not to impose excessive fines and fees as an alternative method of revenue generation in statement
- Property slump depressing land sale revenues, forcing localities to look for new ways to procure funds
In a directive posted on its website, the State Council, China’s cabinet, said the matter would affect trust in government, vowed to make the collection of fees “scientific and standardised” and pledged it would prevent abuses of power that deteriorate the business environment.
“[We’ll] resolutely prevent unreasonable growth in fine revenue and rigorously address issues of falsified or improperly managed proceeds,” it said.
“Meanwhile, we’ll prevent practices such as using fines to boost revenue, managing fines as a substitute for governance and profiteering through fines, and strictly regulate implementation.”
[Fines] must align with the legislative purposes of administrative penalty laws and relevant legal norms
The cabinet said that enforcement standards should be strictly obeyed, while penalties must be based on legal provisions and the facts of the violation.