March 8, 2004

China Plan Tax Relief And Financial Assistance For Bird Flu Hit Poultry Industry

China has spent a total of RMB275 million (US$33.2 million) in the fight against bird flu while local governments had paid out RMB554 million (US$67 million), a Finance Ministry spokesperson said Sunday.

For farmers within the infected sites, the ministries of finance and agriculture were paying RMB10 for each of bird killed, the spokesperson said.

Governments of various levels also shouldered all compulsory vaccination expenses within 5 km of infected sites. The vaccination fee was calculated at RMB0.1 for each chicken, RMB0.2 for each duck or goose, and appropriate amounts for other birds.

Non-compulsory areas that also asked for vaccinations and other quarantine measures equally shared the costs between governments and local farmers, said the spokesperson.

In the economically backward western regions, the central government shouldered 80 percent of the costs, leaving only 20 percent to local governments. But the proportion taken by the central government in developed eastern areas was 20 percent.

To help the poultry industry through the crisis, the spokesperson said, the government planned to reduce or suspend some taxes, including fees for highway transportation, railway or port construction as well as inspection and quarantine, from Feb. 1 to July 31

Enterprises exporting poultry products would also get tax rebates during this period, said the spokesperson.