Shopping card overhaul to tackle corruption
By Zhang Fengming |
May 26, 2011, Thursday
|
Print Edition
Print Edition
CHINA'S State Council, or Cabinet, yesterday issued new regulations to govern the use of pre-paid shopping cards, which includes banning government officials from accepting such cards and requires names to be registered for large-value cards, in a bid to stem corruption.
The new regulations, made by seven government departments, including the central bank, the commerce ministry and the top anti-graft bureau, stipulate that the maximum amount on an unregistered pre-paid shopping card cannot exceed 1,000 yuan (US$154), while that of a registered card must not exceed 5,000 yuan.
Individuals or companies that purchase more than 10,000 yuan worth of unregistered cards also have to register their names. Companies buying cards containing a value of more than 5,000 yuan each or individuals buying cards worth more than 50,000 yuan must pay through banks, rather than in cash, so that regulators will be able to monitor the transactions.
''Corruption, abuse of public funding, and paying less tax have emerged as serious problems as the popularity of pre-paid shopping cards rose,'' the State Council said. ''A firm hand is required to regulate the market and stem out irregularities.''
Notorious reputation
Some companies also use the cards as payment to employees and so avoid paying tax. And the cards gained a notorious reputation as corrupt government officials were frequently found to hoard pre-paid cards among paintings, calligraphy, luxury bags and jewelry.
Pre-paid shopping cards, whether issued by shops or card payment companies, are popular in China as they can be easily used in restaurants, shopping malls, theaters and department stores.
They are also popular in hair salons, gyms and spas as consumers make a one-time payment and their consumption of services or purchases is deducted from the cards.
But consumers may also easily lose their money if merchants flee with the cash paid for the cards. To protect consumers, merchants who issue the cards must sign custody deals with banks where they have to deposit the money, according to the new regulations.
The validity period on unregistered cards should be at least three years, while registered cards have no expiry date.
The new regulations, made by seven government departments, including the central bank, the commerce ministry and the top anti-graft bureau, stipulate that the maximum amount on an unregistered pre-paid shopping card cannot exceed 1,000 yuan (US$154), while that of a registered card must not exceed 5,000 yuan.
Individuals or companies that purchase more than 10,000 yuan worth of unregistered cards also have to register their names. Companies buying cards containing a value of more than 5,000 yuan each or individuals buying cards worth more than 50,000 yuan must pay through banks, rather than in cash, so that regulators will be able to monitor the transactions.
''Corruption, abuse of public funding, and paying less tax have emerged as serious problems as the popularity of pre-paid shopping cards rose,'' the State Council said. ''A firm hand is required to regulate the market and stem out irregularities.''
Notorious reputation
Some companies also use the cards as payment to employees and so avoid paying tax. And the cards gained a notorious reputation as corrupt government officials were frequently found to hoard pre-paid cards among paintings, calligraphy, luxury bags and jewelry.
Pre-paid shopping cards, whether issued by shops or card payment companies, are popular in China as they can be easily used in restaurants, shopping malls, theaters and department stores.
They are also popular in hair salons, gyms and spas as consumers make a one-time payment and their consumption of services or purchases is deducted from the cards.
But consumers may also easily lose their money if merchants flee with the cash paid for the cards. To protect consumers, merchants who issue the cards must sign custody deals with banks where they have to deposit the money, according to the new regulations.
The validity period on unregistered cards should be at least three years, while registered cards have no expiry date.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
