Market Fees and Turnover Taxes Page 2 of 5

Market Participation Fees at the Free Markets

Fees vary from market to market within a city and there are considerable variations between cities. The basic principle is that farmers and resellers pay fees daily based on the size of their stall, though farmers are charged considerably less than resellers. Some free markets offer the option of pre-paying fees monthly in advance with a nominal discount (none in most cases). Only a few vendors pre-pay, mainly to insure a prime spot at the market. Most want the flexibility of varying the markets they go to, so they pay by the day.

The  municipal office of the Industry and Commerce Bureau (gung4.gif (154 bytes)) has a Neighborhood Relations Liaison Office (nei4.gif (237 bytes)) dedicated to sending representatives to each market under its jurisdiction every day to collect the market fees directly from the vendors. (The Tax Bureau separately sends its own representatives to collect the Turnover Tax.)

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Farmers willingly pay
the Market Participation Fee.

Typical Monthly Market Participation Fees
for a 2-3 Meter Space in 1997

(converted into US$ from RMB at $0.12 = 1 RMB)

All-day markets

Morning markets

Beijing Farmers:   US$ 21-28
Resellers:  US$ 72-108
Farmers:  US$ 12 - 18
Resellers: US$ 54-72
Shanghai Farmers:   US$  29
Resellers:  US$  72
Farmers:  US$ 10-12
Resellers: US$ 36-54

 

Avoiding Market Participation Fees
Farmers and resellers generally accept the idea that they should pay the Market Participation Fee when they sell at designated "free markets". But a few try to beat the system by:
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Selling secretly on a quiet
side street near a market.
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Selling in market area after
the tax collectors leave.
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Selling openly on any sidewalk.
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