Amendments to the Highway Law, rejected by China's national legislature at a ballot on May 29 this year because of one vote short, were approved October 31 after legislators were shown an revised and improved plan.

The long-awaited massive taxation reform in China has been given green light to go ahead with a landslide majority vote result.

The amendments were made to replace highway tolls with fuel taxes. The fuel tax reform has been viewed by the government as a breakthrough point of a wholesale tax reform package.

Members of the Standing Committee of the National People's Congress have shown consistent support for the taxation reform, but many of them worried about a detailed fuel tax plan attached with the amendments proposed by the State Council.

They believe that the revisions would help reduce the random and sometime exorbitant fees collected along highways. But they also contend that the State Council plan may also result in unjustifiable burdens upon farmers and others who use fuel, but do not necessarily take highways.

In the past several months, the State Council has conducted several surveys and discussions with local governments to further improve its new taxation plans.

Xiang Huaicheng, the Minister of Finance, told legislators just days before October 31's voting that the State Council has worked out several measures finally to address the "excellent points of concern" raised by lawmakers, which include reimbursing farmers according to the acreage of their farm land and overhauling the taxation system in the countryside to replace various fee collections.

"I can never guarantee absolute equity for each farmer, but this is one of the best ways available. I hope all farmers will be basically satisfied," Xiang said.

"China's taxation reform has been aimed to reduce burden on the people, including the overwhelming farming population. If this cannot be achieved, reform will be of no value at all," he said.

The NPC Standing Committee also reinforced its opinion that the State Council should "earnestly" consider suggestions put forward by lawmakers in formulating its fuel tax reform plans and take "effective measures" to avoid more burdens on farmers.

Most of the lawmakers are in favor of the new plans put forward by the State Council. "During the course of cross- examinations and discussions on the draft law, we have reached the best way to protect the interests of people", said Wang Jiafu, a celebrated jurist and a member of the NPC Standing Committee.

With a presidential decree signed by President Jiang Zemin, the revised Highway Law was published and took effect today. (Xinhua)