Friday, March 25, 2005

China accelerates rural tax reduction and exemption

The news reports that the 25 provincial-level regions in China had already abolished the agriculture tax, and the Chinese government will abolish agriculture tax nationally by 2009. By the end of last year, the China tax burden on farmers had been reduced by $3.39 billion.
Historically agriculture tax used to contribute a lot to industry sectors to China. After government’s pro-urban policies, urban areas in China started to boom, which caused the income gap between the urban and rural communities to widen dramatically. Now, 85% of GDP comes from non-agriculture income. Therefore, it is reasonable let farmers release their burdens.
However, the tax reduction and expectation will bring a lot of changes: “where will surplus officials go and what will the leftover officials do due to no need for levying agricultural taxes? Who will pay the administrative charges after agricultural taxes exemption? Which matters will villagers solve? Take rural education for example. Who will be in charge of paying for schoolhouse repairs? Who will pay for teachers' salaries? Can the children in the poor rural families go to school? Will it be that the villagers will do what the rural affairs require if the mechanism remains without agricultural taxes?”
http://english.people.com.cn/200501/26/eng20050126_171983.html
The farming issue is really a serious problem in China. 70% of Chinese are living in rural areas, if we cannot increase their income, and let them have heart-shooting lives, China will have a hard time becoming powerful country. Do you think there is any way to help Chinese farmers?

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