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Looking to boost farmers' incomes, China plans to get rid of the
agriculture tax in five years, promised Premier Wen Jiabao in his
government work report to the 2nd session of the 10th National
People's Congress on Friday.
The premier announced that the government will press ahead with
the reform of rural taxes and administrative charges.
The Premier said beginning this year, the agricultural tax rate
will be reduced by more than one percentage point per year on
average, and agricultural taxes will be rescinded in five years.
All taxes on special agricultural products will be repealed except
for tobacco, thus reducing the financial burden on farmers by 4.8
billion yuan annually, he added.
This year, the agricultural tax burden on farmers will be
reduced by 7 billion yuan.
He called for consolidating and strengthening the position of
agriculture as the foundation of the national economy and
increasing rural incomes and agricultural production.
"Once again, China's agriculture is in a crucial period of its
development," Wen stressed. This year China must take more direct
and effective policies and measures to strengthen, support and
protect agriculture and increase rural incomes in line with the
need to balance urban and rural development.
Solving problems facing agriculture, rural areas and farmers is
a top priority in all government work this year, he said.
"The central government will appropriate 39.6 billion yuan this
year from its budget for transfer payments to support the reform of
rural taxes and administrative charges. We will accelerate reforms
of county and township government institutions. "
The state will appropriate 10 billion yuan this year from its
grain risk fund to directly subsidize these producers in order to
stimulate their enthusiasm for grain production. The prices of the
means of agricultural production will be better monitored and
controlled to protect farmers' interests.
This year, the central government will appropriate around 30
billion yuan for this purpose, at least 20 percent more than last
year.
(China Daily March 5, 2004)
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