Chinese farmers have long dealt with an agriculture tax that many considered a hindrance to the industry. The 2,600-year-old Agriculture Tax may be going away after the Standing Committee of the 10th National People's Congress discussions over the weekend.
The Standing Committee agrees the tax must end, and now is considering ways to further support the country's agriculture. One member told wire services that the end of the agriculture tax means that farmers could get more help from the state. The member went as far as to suggest some kind of production subsidy and insurance.
Chinese farmers found themselves at a disadvantage when the country joined the World Trade Organization. While Western farmers were getting ag subsidies, these growers were paying into the government coffers with that centuries old tax. Private insurers in the country won't insure farming due to the risk of crop losses. The Standing Committee says it's the government's responsibility to provide ag insurance.
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