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

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

The recent tax breaks 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 they use.

Meanwhile, the sources said, tax breaks are also provided for rural TV and radio broadcasting and franchised operations 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 will enjoy tax breaks, with only 90 percent of income for such retailers of edible farm produce considered taxable.

(Xinhua News Agency February 7, 2007)