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Wenzhou Deepens Reform of Land-Use Based Evaluation on Enterprises
【Fonts: Large Medium Small 【Source: Wenzhou·China 【Date: 2018.07.09】

The Wenzhou Municipal Government has recently issued two documents respectively on the implementation opinions on deepening a reform of industry evaluation system based on land use, and on an action plan of the efficiency upgrading of the enterprise with averaged tax payment of less than RMB 10,000 so as to advance the comprehensive evaluation on enterprises’ performance.


According to the two documents, by 2020, the Industrial Enterprise Above Designated Size (IEADS) (i.e. the industrial enterprises with an annual revenue of RMB 20 million or more from their main business operations) should reach RMB 320,000 per-mu (about 666.67 m2) tax payment, RMB 160,000 per person in total labor productivity, and RMB 1.7 million per-mu industrial value added; the inefficient enterprise with per-mu tax payment below RMB 10,000 will be weeded out of industrial parks, and high-quality small and micro enterprises will be ushered into the parks. These measures will enable Wenzhou’s reform of the enterprise evaluation system to take the lead in Zhejiang Province.


The above-mentioned evaluation system is used to evaluate enterprises’ performance based on the indicators, such as tax payment per mu, industrial value added per mu, energy consumption per unit of industrial value added, so as to give more incentive to and exert pressure against enterprises for their high quality industrial development. Specifically, according to multiple indicators, such as resources consumption and holding, tax payment, and output value, enterprises are ranked into four grades: Grade A, which will be given priority for their development, Grade B, which will be supported for their industry upgrading, Grade C, which will be helped for their industry transformation, and Grade D, which will be urged to accept rectification.


According to the Municipal Government’s plan, this year, on the basis of making the  innovative evaluation on IEADS, and the industrial enterprises below designated size and with 5 mu of land, Wenzhou City has conducted the evaluation on its industrial development platforms, such as industrial clusters, economic development zones, high-tech parks, small and micro enterprises parks, and featured towns, and meanwhile, has rectified the inefficient enterprises with averaged tax payment less than RMB 10,000 per mu. As a result, the IEADSes have risen by 7% in per-mu tax payment, per-mu industrial value added, and total labor productivity. 


This year, through all-round and careful investigation, taking advantage of grid management, and according to stressed rectification aspects varied from year to year, Wenzhou will identify the enterprises with per mu tax payment of less than RMB 10,000 as those to be rectified so as to quicken the elimination of backward production capacity. It is planned, by the end of 2018, to complete the rectification of the above mentioned inadequate tax-payment enterprises owning a plot of industrial land, and accomplish the investigation in the same type of enterprises with their production site leased.


It is reported that the rectification work will focus on high-energy-consumption and high-pollution industries such as those of stainless steel, foundry, papermaking, printing and dyeing, cement, tanning, chemical fiber, and electroplating as well as chemical industry to gradually eliminate and transfer a batch of backward production capacity without resources utilization advantages and with a low industrial added value. Meanwhile, greater efforts will be made for zombie enterprises disposal through mergers and acquisitions, debt restructuring, bankruptcy and liquidation to realize their orderly market exit.

If the “per mu yield ” evaluation results show that the enterprises with averaged per-mu tax payment of less than RMB 10,000 are still not up to prescribed standards after rectification, they will be in a disadvantageous position in resource allocation. They will have to accept higher water and electricity prices, and urban land use tax so as to urge them to be further rectified till their performance complies with the standards or they are willingly to be eliminated without the rectification. In addition, by the end of 2019, local governments will strive to complete the rectification to the above mentioned enterprises with inadequate tax payment and with their production site leased, and to help the same type of enterprises owning a plot of industrial land in their industry upgrading so as to gain a significant rise in per-mu tax payment YoY.

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