Capitalism China: No tax on Chinese farmers



Western democracy financial systems are full of taxes. China capitalism
is moving to no tax. Is this a real freedom of mankind?

No tax on Chinese farmers

cctv.com 01-02-2006 17:12


Agricultural tax in the northern province of Hebei, the eastern
province of Shandong and the southern province of Yunan are no more as
of yesterday. The move marks the complete abolishment of the farm tax
in China, which has been in place in the country for thousands of
years. Now we travel to some of these regions and find out what living
tax-free life is like.

Things are changing in the village of Nanxingguo, Hebei province, home
to 600 households.

Li Sanhong, Hebei Province Villager, said, "It's really a great thing
for us. We don't need to pay tax any more. We can tell our country is
richer and stronger."

Near the end of 2005, China's legislature approved a motion on
abolishing agricultural taxes across the nation. It meant a lifting of
the farm duty, which has been in China for more than 2,600 years.

Since the start of 2006, farmers no longer need to pay farm tax in
Hebei, Shandong and Yunnan, the last batch of regions in China to see
the tax exemption.

Under a policy of "giving more and taking less", the rural
administrative system is changing fast.

Anhui province in East China, it is one of the first to benefit from
China's farm tax exemption.

Facilities for tax-collection have now changed to subsidy giving.

Cheng Congchun, Town Party Official, Anhui Province, said, "Farm
subsidies are all delivered here. And we also handle some loans for the
rural residents."

Official figures show that from 1958 to the year 2000, agricultural
revenue totaled more than 270 billion yuan, or around 35 billion US
dollars. And with the complete lifting of the farm tax, 10 to 20
percent of that total will be relieved from China's 86 million hectares
of farmlands.

Cheng Guoqiang, Research Fellow, State Council Development Research
Center, said, "The full exemption means China's rural reform has
entered a new phase. Now what's more important is improving the systems
of governance and financing. And compulsory education in rural areas
should also be strengthened."

And at an annual economic work conference, the central government said
it will allocate more to invest in and support the agricultural sector
in 2006.

This is expected to enable rural residents to double their savings over
the new year.

Editor:Chen Zhuo Source:CCTV.com

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