Introduce water fees for partial cost recovery of irrigation costs. B. Trade Policies Imports and exports registered through state commodity exchange, which amounts to defacto licensing requirement Government controls all cotton exports Minimum export prices for hides and skins. Eliminate registration requirement for imports and exports. Develop a free market for cotton exports Eliminate minimum prices on hides and skins. C. Taxation Implicit taxation high through state order system and export controls, but little explicit taxation.
Private owners pay a land tax, but collection sporadic.
Phase out implicit taxation through state orders and export controls. Gradually increase land tax as state orders reduced. Use land tax to pay for rural social services eliminating mandatory payments to farm associations now providing social services. Land Reform and Farm Restructuring Land Reform is Slow but Making Progress Land in present associations allocated to households on ten year leaseholds. Leaseholds convertible to ownership upon successful performance for two years.