Govt policy moves on better oversight for public resources deals

Better oversight for public resources deals

China will advance the integration of platforms for public resources transactions to enable more efficient allocation and better oversight, according to a guideline published on Wednesday.

The guideline, issued by the National Development and Reform Commission and approved by the State Council, calls for efforts to make the allocation of public resources more efficient and encourage innovation in the oversight of transactions.

The transaction platform for public resources will be expanded to cover natural resources, equity rights to assets, and environmental rights, the guideline said. Previously, the platform only covered bidding for construction projects, the transfer of land use and mining rights, transactions involving State-owned property rights and government procurements.

The guideline also requires the publication of a national catalog of public resources transactions, with local authorities to come up with their own catalogs based on the national catalog.

The rules for transferring equity rights in natural resources owned by the people, franchise rights and environmental rights, such as those dealing with pollution discharges and carbon emissions, will be refined to allow for bidding and auctions.

A mechanism to ensure fair competition will also be implemented stringently to prevent regional protectionism and industrial monopolies.

It also called for accelerated development of an online transaction system for public resources to enable better information sharing and interconnectivity.

Modern information technologies, such as big data and cloud computing, will be used to monitor and analyze transactions so that violations of regulations or the law can be spotted quickly.

Incentives to boost domestic services sector

The State Council has come up with tax incentives and fee reductions to boost the growth of sectors including elderly care, childcare and domestic services in a bid to expand employment and boost domestic consumption.

The measures were decided at an executive meeting of the Cabinet presided over by Premier Li Keqiang on Wednesday. According to a statement released after the meeting, earnings from the sectors will be exempted from value-added tax and enjoy a 10-percent reduction in taxable income between June 1 and the end of 2025. Those providing real estate or land for any related services will be exempted from deed tax, property tax, urban land use tax and six types of fees, including real estate registration fees.

The cabinet will also conduct research to improve VAT policies to further support the development of such services, and more companies devoted to domestic services will be exempted from VAT.

The supply of community facilities for the services will be increased, with the shortage of facilities in old residential areas to be remedied through repurchasing or renting by the authorities, the statement said.

Private investors providing community based elderly care services can have their tax thresholds lowered, with community institutions also receiving incentives to develop boarding, day care and home-visit services.

The meeting also came up with steps to encourage colleges and vocational schools to launch majors in domestic services and enroll more students in such courses.

A campaign will be launched to improve the skills of domestic service workers employed on flexible contracts, with the cost of training to be covered by unemployment insurance.

It added that commercial banks will be encouraged to offer small, unsecured loans to businesses in the domestic services sector with good credit records.