Qiushi published an article advocating that State-owned enterprises should provide “social dividends” by returning more profits to the State and by increasing the amount of funds used for public benefits.
According to the article, the economy has been experiencing downward pressure. To increase fiscal revenue, state-own enterprises must increase their “social dividends” in addition to their taxes. The article made the following observations.
First, the profits submitted to the central government have not been expended properly. For example, in 2014, only 18.4 billion yuan (US$2.94 billion) went to pay for social security expenses, while 120 billion yuan ($US 19.19 billion) went back to the State-owned enterprises. More profits should be paid into the State coffers.
Second, currently the maximum amount that enterprises submit to the State coffers is about 15 to 25 percent of their profits. In the West, about 30 to 40 percent of the profits are for dividends to be distributed to shareholders.
Third, of 5,000 State-owned enterprises, only 799 are included in the national budget and are required to submit their profits to the State. Particularly, the highly profitable State-owned enterprises in the financial sector are not required to submit their profits to the State coffers at all.
Source: Qiushi, February 17, 2015