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With this urban and rural
educational fund surcharge, the government intends to
speed up elementary education. The surcharge is the second
biggest source for educational fund after government budgetary
appropriations. This is particularly true of the rural
educational fund surcharge, which has become an important
source of money for primary and secondary schools in rural
China. The State Council stipulates that the rural educational
fund surcharge is collected at the rate of 1.5 percent-2
percent of the net incomes of farmers of the previous
year and that the urban educational fund surcharge, at
the rate of 3 percent of three taxes (the value-added
tax, business tax and consumption tax). The rural educational
fund surcharge is collected by the township government
and
the urban educational fund surcharge is collected by the
taxation department. Since the beginning of its collection
in 1987, the surcharge has provided a financial guarantee
for improving educational conditions, increasing remuneration
for Minban (non-government-run)(community-hired) teachers
and making nine-year compulsory education universal. |