State Council makes public improper implementation of major policies by local governments

The General Office of the State Council issued a circular on Nov 11, publicizing issues found during the sixth nationwide inspection, aimed at promoting implementation of the central government’s major policies.

The inspectors found six provincial-level regions had failed to fully implement the tax and fee reduction policies. Problems surfaced primarily in the areas of electricity and gas prices, as well as expressway tolls.

According to the circular, the governments of Changchun, Jilin province; Nanchong, Sichuan province; and Lanzhou, Gansu province, underperformed in regulating as required the higher power prices occurring in indirect electricity supplies — power provided not directly by grid corporations. They deviated from the country’s commitment to lowering electricity price for businesses, micro and small-sized ones in particular.

In terms of natural gas prices, some authorities in Hainan province and Chongqing municipality failed to make timely adjustments to the local gas price, without making the end users benefit from a reduced value-added tax rate for the energy, according to the circular.

Another problem concerning expressway tolls appeared in Jiangxi province, said the circular. A document issued by the Ministry of Transport, effective July 1, entitles ETC users to at least a 5 percent discount on the highway toll charges. However, the local transport bureau dented the effect of the favorable policy by adopting a rounding-up approach.

The local governments involved have actively taken rectification measures, and held accountable pursuant to laws and regulations the departments and officials neglecting their duties for supervision and management. The State Council will track the progress in rectification work according to the requirements by the executive meeting on Oct 23.