Hunan has become the latest Chinese province to tighten controls on non-tax revenue growth through a revision of local regulation, as Beijing intensifies efforts to revive market sentiment and private investor confidence.<\/p>\n
The regulation changes, set to take effect on November 1, explicitly mandate that local-level governments fully remit proceeds from the disposal of confiscated goods \u2013 along with any interest they generate \u2013 to the state treasury, in a sign of how such non-tax revenue is now under stricter oversight by the central government.<\/p>\n
Additionally, the controls forbid local officials from using fines as a tool to increase revenue, while also prohibiting the linking of law enforcement performance assessments to the amount of fines collected.<\/p>\n
Non-tax revenue \u2013 including administrative fees, government fines and other sources \u2013 often reflects the financial burden on private firms, many of which have struggled amid a post-pandemic slowdown, cutthroat domestic competition and external trade tensions.<\/p>\n
And its share in fiscal revenue has been growing as authorities in debt-ridden regions seek alternative income sources amid dwindling land sales.<\/p>\n