Source: CCTV.com

05-02-2006 15:15

Starting from January first, 2006, agricultural taxes in the northern province of Hebei, the eastern province of Shandong and the southern province of Yunan were no more. The move marked the complete abolishment of the farm tax in China, which has been in place in the country for thousands of years.

It's a busy time for farmers here. Yang Ming's family is harvesting their winter wheat, and preparing for the spring farming season. The government's 2005 decision to abolish agriculture tax is providing great relief.

Yang said: "We don't need to pay the agricultural tax this year. You are not a farmer, you can't image what good news it is for us, and how happy we are."

Yang's wife agrees. She says on going tax reform and the total removal of the tax has seen her family's annual income rise from 2,000 yuan to 2,500.

Jiang Chunping, Vice Director of Agriculture Bureau of Shilin country said: "We started the reform in 2002. In 2005, we have totally scrapped the farming tax, which is worth of nearly 10 million yuan. Each farmer has saved nearly 50 yuan."

The tax reform is greatly encouraging the farmers. They say they can now choose more valuable crops to plant so as to make more money.

The agricultural tax has existed in China for more than 2,600 years, but it has a more far reaching impact. Many lives have been changed.

Yang Yunqiong is an employee of Guishan Town's Agricultural Economy Office. Her situation has also altered, but not necessarily for the better.

Yang said: "Due to the reform, I might lose my current job. And there are less jobs around for government employees. But I know it's a good thing, especially for the farmers."

The tax reform has also impacted local government. It's reduced fiscal income and the agricultural work. Personnel reform has seen many jobs now combined, or even cut.

Liu Chunmin, Secretary of CPC Guishan Town Committee said: "It is true that our revenue has shrunk, and our job positions have been reduced to 70 from more than 130. We will develop other economies, such as coal production in our town to meet the fiscal gap. We will never put the burden back on farmers by any means."

Abolishing agriculture tax is an important policy the central government made to help China's 800 million farmers. However many rural workers are still using primitive tools and methods to make a living. Oxen, harrows, and physical labor are all they have to work with.

 

Editor:Chen Minji