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BEIJING - CHINA will raise taxes on the industrial use of farmland from the beginning of 2008 and extend the levies to foreign companies in a bid to curb illegal land grabs, state media said.
The new rules, taking effect from Jan 1 next year, increase the highest tax rate to 50 yuan (S$9.80) per square metre from 10 yuan per square metre, the China Securities Journal reported on Friday.
Foreign firms and their joint ventures will no longer be exempt from the tax and will pay the same rate as domestic companies, it said.
The government will also begin to collect taxes on arable land used for railway and airport construction, which are currently exempt.
The move is aimed at reining in seizures of farmland, the report said, one of the major factors behind rising social unrest throughout the country.
State press reported last month that another 32,000 cases of illegal land grabs had been uncovered this year, adding to 130,000 found last year.
The seizures also have been blamed for spurring spiralling real estate costs and often involve local governments colluding with businessmen to force people off their property to make way for lucrative industrial and property developments.
The government also has voiced fears that rampant property development was reducing the amount of farmland to levels that could threaten China's food security situation. -- AFP
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