Free Chinese Lesson - More than half of China's provinces exempted from agricultural tax

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More than half of China's provinces exempted from agricultural tax

www.chinanews.cn 2005-01-17 13:21:50

Chinanews, Jan.16 - China's experimental reform of rural taxes and
administrative charges has entered a new phase. So far, reduction and
exemption of agricultural taxes have been implemented in 30 provinces,
autonomous regions and municipalities.
At the very beginning of 2005, Jiangsu, Chongqing, Henan, Sichuan,
Shanxi, Inner Mongolia, Guizhou, Anhui, Hainan, Guangdong, Ningxia and
Fujian announced the abolishment of agricultural taxes one after another.
To date, peasants in 18 provinces have been entirely exempted from paying
agricultural taxes. Among the remaining 12 provinces, the seven major
grain producing regions (including Hubei) have reduced their agricultural
tax rates by over 3 percentage points.
In 2004 China announced its policy of reducing agricultural taxes in
major grain producing regions by over 1 percentage point annually and to
abolish all agricultural taxes in 5 years. Central treasury would arrange
51 billion yuan of transfer payment to subsidize local governments'
financial burden caused by exempting agricultural taxes in major grain
producing regions.

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