China has begun to implement tax break and exemption polices for the Qinghai-Tibet railway and some other programs in rural areas to mitigate their operation costs, sources with the State Administration of Taxation said on Tuesday.

The railway, 1,956 kilometers long, started on July 1, 2006, has brought the Qinghai-Tibet Plateau closer to other parts of China and allow easier access for outside travelers to the Roof of the World.

The recent tax holidays included exemption of business tax on transport income and tax on urban construction and maintenance for the Qinghai-Tibet Railway Company, and exemption of stamp tax on its business books and its cargo transport contracts.

Resources tax is exempt on sand and stones used by the company and its subsidiaries themselves, and taxes are exempted on real estates and urban land used by themselves.

Meanwhile, the sources said, tax holidays are also provided for rural penetration of TV and radio broadcasting and franchised operation of farm produce.,

Businesses and institutions running cable TV networks in rural areas are exempted from business tax or enterprise income tax on income they earned from rural cable users for three years.

The policy will be carried out from Jan. 1, 2007 to Dec. 31, 2009.

According to the sources, franchised retailers of farm produce can enjoy tax holidays. For instance, not all of the income, but 90 percent of it for such retailers of edible farm produce should be taxable.

Editor: Donald