Source: Xinhua

02-29-2008 14:09

China's 2,600-year-old agricultural tax will no longer exist as of Jan. 1, 2006. The national legislature on Thursday approved a motion to abolish the tax.

The move will lessen financial burdens across the agricultural industry, from produce growers to pig farmers.

Based on statistics, the move is expected to save the country's farmers up to fifty billion yuan, or about six billion US dollars, every year.

Statistics show that in 1950, the income from agricultural tax made up 39 per cent of the country's total financial revenue. But this proportion dropped to 0.05 per cent this year.

Liu Jibin, vice-chairman of the Financial and Economic Committee of the National People's Congerss said as local revenues will decrease with the abolition of the agricultural tax, major grain producing areas and central and western regions will receive state assistance.

The central government has already been supporting local governments in these regions. It provided 21.7 billion yuan (US$2.7 billion) in aid in 2004, and 35.7 billion yuan (US$4.4 billion) this past year.

2005-12-29

 

Editor:Xiong Qu