Sunday, March 07, 2004

economy - Lower taxes, hungry officials

Prime minister Wen Jiabao promised lower taxes for the embattled farmers in his country during the ongoing session of the National People's Congres, probably one of the hardest promises to deliver.
Wen wants to cut back agricultural taxes with one percent per year, eliminating them fully by 2007. He earned an applause with that promise from the delegates, but might find local official blocking the policy.
Taxes are traditionally collected at the lowest administrative level and each layer in the hierarchy can keep a cut of the taxes. That system makes tax-cuts rather unpopular among local government, who have to find alternatives to cover their legal and illegal financial needs.

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