150 million Chinese farmers no longer pay agricultural tax: white paper

In 2004, 150 million Chinese farmers no longer paid agricultural tax, the rate of agricultural tax for 540 million farmers was reduced by three percentage points, and the agricultural tax rate was reduced by one percentage point for the rest of the farmers, says a white paper on China's human rights progress in 2004 issued by the Information Office of the State Council on Wednesday.

The state adopted effective measures to increase input into agriculture and spares no pains to increase farmers' incomes and improve their lives, according to the paper.

In February 2004, the Central Committee of the Communist Party of China (CPC) and the State Council jointly promulgated document No. 1, known as "Opinions on Several Policies to Promote Increase of Farmers' Incomes," which explicitly stated that China must adhere to the strategy of comprehensive development of urban and rural areas and the principle of "giving more, taking less, and being flexible," and that it is a basic task to realize, safeguard and develop farmers' material interests and protect their rights and interests.

Within a year, the state formulated a series of policies that were well endorsed by the farmers, directly contributing to the increase of their incomes, says the paper.

At the beginning of 2005, the Central Committee of the CPC and the State Council again promulgated, in the form of document No.1, "Opinions on Several Policies on Further Strengthening Agricultural Work and Enhancing the Comprehensive Agricultural Productive Capability," deciding to further intensify efforts in implementing the policies of cancellation of special agricultural product tax, reduction or exemption of agricultural tax, providing direct subsidies to grain growing farmers, for quality seeds for four grain crops, and for those who buy large or medium-sized agricultural vehicles or equipment (abbreviated as "two reductions and exemptions" and "three subsidies") so as to further guarantee the rights and interests of the farmers.

The paper shows that the state greatly increased its input into agriculture, rural construction and other undertakings that would help increase farmers' incomes.

In 2004, the central government appropriated funds worth 262.6 billion yuan for these purposes, an increase of 22.5 percent over the previous year. Statistics show that 11.6 billion yuan was used as direct subsidies for grain growing farmers in major grain- producing areas; 2.8 billion yuan was used as subsidies for quality rice, corn, soybean and wheat seeds; 500 million yuan was allocated as special subsidies to appropriately assist farmers who bought large agricultural vehicles or equipment.

Meanwhile, greater efforts were made to reduce or exempt agricultural taxes. In 2004, the amount of agricultural taxes that were reduced or exempted came to 23.3 billion yuan, and 6.8 billion yuan in special agricultural product tax was canceled. The farmers were relieved of tax burdens, which totaled 30.1 billion yuan, according to the paper.