Premier Zhu Rongji hailed the pilot rural tax reform in East
China's Anhui Province for achieving "periodic success" after just
one year.
Zhu listed the success as increasing farmers' income, harmonizing
the relationship between farmers and village and township
authorities, and improving grass-roots democracy.
However, he said problems still existed, making the reform one of
the top tasks for the government this year.
"The problems must be encountered and solved with the help of
financial aid from central government," Zhu said.
Zhu encouraged the officials and farmers of Anhui to work hand in
hand and set a good example for the rest of the nation in the
"tax-for-fees" reform.
The country, traditionally an agricultural society boasting the
world's largest rural population, kicked off the reform earlier
this year to abolish assorted charges on farmers. The reform is so
named for the principle of replacing such fees with a stable tax
assessment rate.
The reform started on a trial basis in Anhui Province at the
beginning of 2000, which is home to several other historic land
reforms.
Upon the completion of the tax-for-fees reform, Chinese farmers
will hand in 50 billion yuan (US$6.3 billion) in agricultural taxes
but no extra fees, compared with 30 billion yuan (US$3.6 billion)
in tax in the past and 60 billion yuan (US$7.2 billion) in fees to
village-level administrations. Some 30 billion (US$3.6 billion)
more was wantonly levied by local officials under assorted
names.
More farmers will benefit from the reform, which will spread to the
rest of China by late 2002.
The central government has allocated up to 30 billion yuan (US$3.6
billion) to guarantee funding for education and other public
services that otherwise might be cut because of a loss in tax
revenue.
"The reform is positive, first and foremost, because it will check
the rampant trend of concocting excuses to levy charges," Zhu said
during his recent inspection in the pilot province.
As
many as 50 assorted surcharges -- from a fee on pig slaughtering to
one for road construction -- were removed last year in Anhui. That
sliced 31 percent off the farmers' tax burdens there.
(Chinadaily.com.cn 07/23/2001)