A State Council executive meeting on Sunday discussed ways to push forward taxation reform in China's countryside.

A statement from the meeting, which was presided over by Premier Wen Jiabao, said that the key to implementing the rural taxation reform lies in advancing comprehensive rural reforms in township government organs, rural compulsory education and the financial systems of township and county governments.

The statement stressed the necessity to test the comprehensive reforms in more rural areas and encourage township governments to focus more on rural social management and public services by reducing personnel and expenditure.

The statement also called for the improvement of compulsory education reform to ensure financial resources for free compulsory education for rural students.

On reforming and improving the financial systems of township and county governments, the statement promised to transfer more funds to the local governments after the rural taxation reform cuts a large chunk of their tax income.

The statement also proposed the establishment of a mechanism to monitor farmers' debts.

The meeting also discussed and adopted the draft anti-drug law, which will be submitted to the Standing Committee of National People's Congress for deliberation after further revision.

(Xinhua News Agency July 3, 2006)