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Tax break and exemption policies are being implemented in China for the Qinghai-Tibet railway and some other projects in rural areas to lower their operational costs, said sources with the State Administration of Taxation on Tuesday.

In effect the 1,956km railway project, which got underway in July, 2006, has brought the Qinghai-Tibet Plateau closer to other parts of China and allows easier access for travelers to the 'Roof of the World.'

The recent financial breaks include exemption of business tax on transport income and on urban construction and maintenance for the Qinghai-Tibet Railway Company. They're also exempted stamp tax on their business books and cargo transport contracts.

Resource tax is exempt on sand and rock used by the company and its subsidiaries. There's also exemption on real estate and urban land used by them.

The sources said tax breaks are also provided for rural penetration of TV and radio broadcasting and franchised operations relating to farm produce.

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

The policy will be effective between January 1, 2007 and December 31, 2009.

Sources say franchised retailers of farm produce will benefit from the tax breaks as only 90 percent of their income will be taxable.

(Xinhua News Agency February 7, 2007)