China to abolish ancient agricultural tax
(AP)
Updated: 2005-12-29 19:17

The agricultural tax, a flat tax based on size of a family and amount of land cultivated, contributed only 5 percent of total tax revenues, according to government figures. The central government has promised to make up for shortfalls in local revenues.

Still, the grain subsidies and other measures appear to be encouraging farmers to continue to grow grain — another priority among leaders determined to ensure the country's basic self-sufficiency in staple foods.

China's total grain harvest for 2005 is expected to reach a record 484 million tons, up 3 percent from last year's record harvest of 469.5 million tons, state media reported Thursday.

The bumper crop was largely attributed to improved technology, with average yield per hectare hitting a record 4.6 metric tons (5 tons). "The high growth of grain production ... shows that the increase of China's grain production has shifted from the expansion of planting area to the advancement of farming technology," China's Agriculture Minister Du Qinglin was quoted as saying.

Du reported that average annual income for farmers was forecast to hit 3,250 yuan ($400) this year, up 6 percent from the year before. That's less than half the national average, underscoring the vast disparity between rural and city dwellers.