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China To Go Ahead With Rural Tax Reforms

by Mary Swire, Tax-News.com, Hong Kong

11 December 2001

China will go ahead with rural tax reforms next year which will involve the implementation of a fixed tax to replace the numerous tax rates currently in operation which are inefficient and often arbitrary. The English Peoples Daily news service has reported that the rural tax-for-fees reform which is at present only operational in about 29 provinces, will be expanded to more districts next year.

According to the report, the reforms are intended to reduce the farmers' financial burden by also eliminating fees for services such as public education as well as salaries for extra staff at rural governments, and put more 'standardised' taxes in their place.

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