Tax break and exemption policies are being implemented in China
for the Qinghai-Tibet railway and some other projects in rural
areas to lower their operational costs, said sources with the State
Administration of Taxation on Tuesday.
In effect the 1,956km railway project, which got underway in
July, 2006, has brought the Qinghai-Tibet Plateau closer to other
parts of China and allows easier access for travelers to the 'Roof
of the World.'
The recent financial breaks include exemption of business tax on
transport income and on urban construction and maintenance for the
Qinghai-Tibet Railway Company. They're also exempted stamp tax on
their business books and cargo transport contracts.
Resource tax is exempt on sand and rock used by the company and
its subsidiaries. There's also exemption on real estate and urban
land used by them.
The sources said tax breaks are also provided for rural
penetration of TV and radio broadcasting and franchised operations
relating to farm produce.
Businesses running cable TV networks in rural areas are exempted
from business and enterprise income tax on income they earned from
rural cable users for three years.
The policy will be effective between January 1, 2007 and
December 31, 2009.
Sources say franchised retailers of farm produce will benefit
from the tax breaks as only 90 percent of their income will be
taxable.
(Xinhua News Agency February 7, 2007)