February 16, 2004

China's Bird Flu Hit Poultry Industry To Enjoy Tax Benefits

Poultry companies in China hard hit by the bird flu outbreak have been given a lifeline as the government announced tax benefits this year, state media reported.

A government notice from the general office of the State Council, China's Cabinet, also said value-added taxes will be refunded to poultry processing firms from February 1 to July 31.

Poultry raising and processing companies could also have a reduction of tax on land use and vehicle usage, among other preferential treatments, upon approval by provincial governments, the official Xinhua News Agency reported over the weekend, citing the notice.

The government has pledged financial support to help farmers and the poultry industry weather the outbreak of avian flu which has hit China and other countries across Asia, the notice said.

The central government is urging banks to extend the short-term loans of poultry raising and processing firms. It has pledged to cover half of the interest on loan extensions for up to six months, the notice said.

So far, over 1.2 million poultry have been killed in China in light of the bird flu outbreak, said Xinhua.