Addressing a national conference in Beijing, Wen said the full-scale implementation of the rural tax-for-fees reform - in a bid to boost rural residents' incomes and agricultural productivity - will help release farmers from unreasonable administrative charges.

Wen said the trial of the reform, which started three years ago, has achieved remarkable success and has been warmly welcomed by millions of farmers.

The premier urged grass-roots officials in rural areas to make bold and innovative endeavors to guarantee the smooth development of the reform.

He said the reform should continue to relieve farmers' burdens, particularly grain producers. And governments at central and provincial levels should enhance their support of China's agricultural areas. Another important step is to eliminate the special agricultural product tax.

Wen said most regions in the country, which have the ability to abolish the tax, should do so. Other less well-to-do areas, which are not able to discharge it, should decrease the tax's rate and remove it gradually.

Aiming to ease the financial burden on every rural family, the state-backed agricultural tax rate should not be exceeded.

In addition to freeing farmers from a long list of exorbitant fees and taxes, the central government is calling for the acceleration of institutional reform in rural areas.

The Chinese Government started the tax-for-fees reform in March 2000.

(China Daily April 4, 2003)