China will channel more than 100 billion yuan (US$12.8 billion) from sales of land use rights next year into supporting agriculture, a Vice Minister of Land and Resources (MLR) said Thursday.

The income from sales of state-owned land use rights would come under local fiscal budgets, to be mainly used for cultivation and infrastructure construction in the countryside, said Li Yuan.

Government departments would be implementing land appropriation reforms and enforcing the levy of land use fees this year.

Li said the levy of land appropriations tax would contribute to the macro-economic control of land use as well as the development of agriculture and countryside.

He said the ministry would adjust land tax policies and revenue from the sales of land use rights would mainly be used for the improvement of farm land.

(Xinhua News Agency December 22, 2006)