The revocation of agricultural tax is only the first step
towards further boosting the country's agricultural development, says an article
in the Modern Life Daily. An excerpt follows:
It has been reported that the government will completely free farmers from
agricultural tax from next year and the country's top legislature is working to
annul the agricultural tax regulation.
The announcement about exemption from the agricultural tax is indeed a piece
of inspiring news. Statistics indicate that in 1950, agricultural tax accounted
for 39 per cent of the country's total fiscal revenues. But the figure slumped
to only 1 per cent in 2004.
Over the past few decades, the proportion of agricultural tax in national
income has been on the decline. Thus not collecting the agricultural tax from
farmers will not impact the country's finances significantly.
On the other hand, the declining share of the agricultural tax demonstrates
the sluggish development of the sector over the past few decades, while other
industries have been booming.
Freeing farmers from agricultural tax means lightening the burden on their
shoulders, but helping agriculture catch up with other industries still requires
preferential policies from the government.
It is well known that the country's agricultural sector has been confronted
with severe challenges since China's accession to the World Trade Organization.
Due to a low input and output ratio, more and more farmers have lost interest in
agriculture and poured into cities to try to make a living.
Obviously, freeing farmers from agricultural tax serves as an important step
towards recovering their confidence in farming. But nevertheless, China still
has much to do before it solves every problem. There are still a lot of policies
and systems that discriminate against farmers. They do not enjoy as many
benefits as their urban counterparts. We must capitalize on this positive
decision.