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<TD class=c12 vAlign=top>China to Abolish Ancient Agricultural Tax<IMG src="http://en.chinabroadcast.cn/mmsource/image/2005-10-14/qq.gif" border=0> </TD></TR>
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<TD class=c13 vAlign=top>2005-12-29 15:10:30      <a href="http://www.crienglish.com/" target="_blank" >CRIENGLISH.com</A> </TD></TR>
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< align=left><FONT color=blue>(A farmer takes a break at a crop field Wednesday, Jan. 30, 2002 in Fengyang, Anhui Province, China. China will abolish its 2,600-year-old agricultural tax effective Jan. 1, the government announced Thursday.)</FONT>
<STRONG>Related: <FONT color=blue><a href="http://en.chinabroadcast.cn/2238/2005-12-19/125@288514.htm" target="_blank" ><FONT color=blue>China to Abolish Agricultural Tax Next Year</FONT></A></FONT></STRONG><BR><BR>China is abolishing its 2,600-year-old agricultural tax effective Jan. 1, the government announced Thursday, part of the goverment's effort to improve the lot of hundreds of millions of poor farmers. <BR><BR>A farmer takes a break at a crop field Wednesday, Jan. 30, 2002 in Fengyang, Anhui Province, China. China will abolish its 2,600-year-old agricultural tax effective Jan. 1, the government announced Thursday. <BR><BR>China's leaders announced in 2004 plans to eliminate many basic taxes within five years and to subsidize grain output. <BR><BR>Most of the 800 million people living in China's countryside have been left behind by the country's economic boom. The government has made improving the lives of the rural poor a priority, fearing that violent clashes between farmers and local authorities over rising tax burdens could threaten social stability. <BR><BR>The National People's Congress, a largely ceremonial parliament which has about 3,000 deputies, usually policies decided by the Communist Party. It approved Thursday "a motion on abolishing the regulations on the (farm) tax," the Xinhua News Agency reported. <BR><BR>"China's 2,600-year-old agricultural tax will no longer exist as of Jan. 1, 2006," it said. <BR><BR>The agricultural tax, a flat tax based on size of a family and amount of land cultivated, contributed only 5 percent of total tax revenues, according to government figures. The central government has promised to make up for shortfalls in local revenues. <BR><BR>The change in tax policy does nothing to address more fundamental problems faced by farmers who can claim only land use rights, not ownership: the goverment banned land ownership when they took power in 1949, promising to liberate peasants from the tyranny of landlords. <BR><BR>Farmers have little recourse, and receive minimal compensation, when they lose their land to real estate development and other projects. <BR><BR>The lack of security prevents farm families from using their land as collateral for bank loans. And it makes many reluctant to invest much in land that could be seized at any time by local officials keen to sell the land use rights. <BR><BR>Still, the grain subsidies and other measures appear to be encouraging farmers to continue to grow grain — another priority among leaders determined to ensure the country's basic self-sufficiency in staple foods. <BR><BR>China's total grain harvest for 2005 is expected to reach a record 484 million tons, up 3 percent from last year's record harvest of 469.5 million tons, state media reported Thursday. <BR><BR>The bumper crop was largely attributed to improved technology, with average yield per hectare hitting a record 4.6 metric tons (5 tons), the newspaper China Daily reported. <BR><BR>"The high growth of grain production ... shows that the increase of China's grain production has shifted from the expansion of planting area to the advancement of farming technology," it cited China's Agriculture Minister Du Qinglin as saying. <BR><BR>Du reported that average annual income for farmers was forecast to hit 3,250 yuan ($400) this year, up 6 percent from the year before. That's less than half the national average, underscoring the vast disparity between rural and city dwellers. <BR><BR>(Source: AP)   <BR></TD></TR></TABLE>

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<TD class=c12 vAlign=top>China to Abolish Agricultural Tax Next Year<IMG src="http://en.chinabroadcast.cn/mmsource/image/2005-10-16/yby.gif" border=0> </TD></TR>
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<TD class=c13 vAlign=top>2005-12-19 21:45:00      <a href="http://www.crienglish.com/" target="_blank" >CRIENGLISH.com</A> </TD></TR>
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< align=center><IMG src="http://en.chinabroadcast.cn/mmsource/image/2005-12-19/farm-tax350.jpg"><BR><FONT color=blue>(A Chinese peasant and several children work in the farmland. Photo: forum.cul.sina.com.cn)</FONT>
China's agriculture will enter a new zero-tax era in 2006. This puts an end to an agricultural tax which has lasted for 2600 years. <BR><BR>China's Finance Minister, Jin Renqing, announced the news on Monday. He said peasants nationwide are expected to benefit from the exemption. <BR><BR>Most of China's municipalities and autonomous regions have now announced the exemption of all agricultural taxes. This releases millions of peasants in the world's most populous nation from a centuries-old tax burden. <BR><BR>Agricultural taxes have been one of the major sources of financial revenue in China. In recent years, its importance is gradually being replaced by the country's fast developing industry and service sectors. <BR><BR>Last year, agricultural tax income had only accounted for 1 percent of the country's total financial revenue. <BR><BR>The Minister also noted the central government will intensify financial support to develop the country's agriculture. <BR><BR>Funds will be allocated towards construction of infrastructure and medical services in rural areas. Money will also be spent on public sanitation, compulsory education, and environmental protection. The main focus is to elevate living standards of people living in the countryside. <BR><BR>Jin Renqing also said this year's financial revenue is expected to exceed 3 trillion yuan, or 370 billion US dollars. This represents an increase of 15 percent over last years figure. <BR><BR>(Source: CRIENGLISH.com)</TD></TR></TABLE>