Experts on raising farmers' income, rescinding agricultural tax

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Last updated at: (Beijing Time) Monday, March 08, 2004

Experts on raising farmers' income, rescinding agricultural tax

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The resolve to raise farmers' income and reduce and proceed to rescind agricultural taxes voiced at the on-going sessions of the top legislature and advisory body was echoed by agricultural expert NPC deputies and CPPCC members during their heated panel discussions on the relevant topics.

The year-on-year rise of farmers' income ranged between 2.1 percent and 4.8 percent in the past six years from 1997 to 2003, less than half of the income growth for urban dwellers. In his report to the plenum of the Second Session of the 10 National People's Congress Saturday, Ma Kai, minister of the State Development and Reform Commission, pledged to increase the farmers' income by 5 percent this year. If materialized, it will be the highest growth of farmers' income in seven years.

Chen Xiwen, an official from the Central Financial and Economic Leading Group, said on Sunday the crux of matter in raising the farmers' income hinges on stabilizing and exploring grain production capacity of major grain-producing areas. The Chinese government has launched a series of substantial measures such as subsidizing the purchase of agricultural equipment to help solving the problem.

Han Jun, a noted expert and an official of rural area division from the State Council Development Research Center, held that priority would be given to improving quality of agricultural products, developing stock-breeding industry and optimizing the structure of agriculture industry.

Quality and security of agricultural products remain the weakest link in the country's agricultural sector and the problem became particularly protruding against a backdrop of the recent outbreak of the deadly H5N1 strain of bird flu across China, said Chen Xiaohua, an official with the Ministry of Agriculture, who called for the establishment of an effective mechanism to ensure both quality and security of agricultural products and help farmers to earn more income.

Rescindment of agricultural tax in five years, a goal advocated by Premier Wen Jiabao in his government work report on last Friday, added pressure to China's budget to some extent but the problem could be resolved by optimizing the capital structure, said Zhang Xuedan, a noted tax expert from the Ministry of Finance.

If the economic performance remain stable, China's fiscal incomes will adequate to offset the decrease in agricultural tax revenues, Zhang said.

Source: Xinhua

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