State Council Calls for Advancing Experiment in Rural Tax Reform

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Last updated at: (Beijing Time) Saturday, May 17, 2003

State Council Calls for Advancing Experiment in Rural Tax Reform

The State Council, China's cabinet, has called for efforts to carry out experiment in rural taxi reform in an all-round way.

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The State Council, China's cabinet,has called for efforts to carry out experiment in rural taxi reform in an all-round way.

The trial was made in 20 provinces, autonomous regions and municipalities, and part of counties and cities in other provinces in 2002.

This year, according to the State Council, work should be done to draw experience and improve related policies to ensure an obvious reduction of farmers' financial burden, the normal operation of town, township and village administrative institutions, and sufficient input in compulsory education in the countryside.

Meanwhile, rural tax policies should be further improved to gradually reduce the agricultural specialty tax and nurture conditions for stopping collecting the tax.

The agricultural tax reduction and exemption system should be further improved. The reduction and exemption should be decided according to the principle of "slight cut for slight disaster, heavy cut for heavy disaster and exemption for severe disaster." Channels of stable fund supply should be opened up to support the reduction and exemption.

The State Council also calls for greater efforts to ensure that the tax assignments for farmers are rational and fair so as to encourage their initiative.

The policy of "one meeting for one event" should be strictly carried out in villages. That means any public undertakings in villages which demand fund raising or labor of villagers should be decided by farmers themselves through discussions at village meetings.

All rural-related fees should be straightened out and rectified to alleviate farmers' financial burden.

All localities are required to vigorously explore ways of dissolving both public and individual debts in rural areas.

The State Council also urges that supervision and inspections should be intensified to guarantee the success of the reform.

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