Cash-Strapped North China City Condemned for Arbitrarily Fining Businesses

The State Council said the Bazhou government had ordered lower-level authorities to increase non-tax revenue to make up for its funding shortage, “provoking strong resentment among businesses and the public.” Photo: VCG

China has condemned a city government in the northern province of Hebei for arbitrarily fining and collecting fees from thousands of businesses to fill the hole in its coffers.

The case reflects the struggles of some local governments in making ends meet, as slowing economic growth and the troubled property market have bitten into fiscal revenue, especially that from land sales.

The State Council, China’s cabinet, issued a statement (link in Chinese) on Friday blaming Bazhou for levying fees on businesses “without any reason or procedure” and imposing unfair penalties in order to collect more non-tax revenue.