China will kick off a special inspection of rural tax and fee
system reform in some provinces, the Ministry of
Finance announced on Tuesday.
The State Council will send 6 inspection teams to 12 provinces
from November 21 to December 5 to check out the reform progress
concerning rural tax and fee collection, according to the
To alleviate the burden on Chinese farmers, the government has
been reforming its rural tax and fee systems for years in an effort
to eliminate growing administrative and arbitrary fees.
Since the beginning of this year, the government has stopped
collecting the agricultural tax in all provinces except three,
where agricultural tax ratios have been lowered to 2 percent. Next
year, the whole country is expected to annul the agricultural
As local governments collect less taxes and fees from farmers,
they are facing fund shortages in supporting education and
infrastructure construction. To solve this problem, the central
government has allocated huge sums of money to alleviate the fund
shortages of local governments.
(Xinhua News Agency November 16, 2005)