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Agricultural taxes exempted in 2 provinces
Updated: 2004-03-27 11:30

Farmers of northeast China's Jilin Province would be exempted from agricultural taxes this year, said Governor Hong Hu at a press conference Thursday.

The State Council, China's cabinet, set Jilin, together with its northeastern neighbor Heilongjiang, as pilot provinces, where agricultural taxes, excluding tobacco tax, would be exempted this year, said Hong.

The exemption of agricultural taxes would save totally 140 million yuan (US$16.9 million) for farmers in Jilin, said the governor, and the consequential loss of provincial financing would be compensated by the central government.

The policy would stimulate farmers' initiative in agricultural production and could also avoid some unnecessary conflicts between farmers and grass-root cadres when taxes were imposed, he said.

Hong said that Jilin would well integrate the policy with raising agricultural output and enhancing production efficiency.

China will cancel agricultural taxes in all provinces, autonomous regions and municipalities within five years since 2004.

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