Laws of the People's Republic of China

The Ministry of Finance

Circular of the Ministry of Finance of the People's Republic of China on Stopping the Collection of Price Subsidy from the Employees of the Chinese Parties to Enterprises with Foreign Investment

CaiQi [2001] No.664

November 7, 2001

The relevant issues concerning the collection of price subsidies from the employees of the Chinese parties of enterprises with foreign investment are hereby notified as follows:

It is based on the distribution system of low wages, low price and multi subsidies adopted by our country to start collecting the price subsidy. For recent years, the market prices have been opened and the expenses paid by the public finance in the aspects of resident non-staple foodstuffs, etc. has decreased. Thus this Ministry has prescribed in Document CaiWaiZi [2000] No.4 of the Ministry of Finance in 2000 that the finance organs of the localities may, according to the actual situations of their respect areas, lower the standard of price subsidy for the enterprises or stop the collection of this price subsidy from January 1, 2000, taking their respective circumstances into consideration.

With the deepening of the economic system reform of the State and the new situation that our country is going to join the WTO, it has been decided after deliberation that the public fiscal organs of the localities shall stop collecting the price subsidy of the Chinese parties of enterprises with foreign investment.