The State Council held an executive meeting Thursday to discuss on the ongoing rural reforms on taxation and levying, in order to reduce the financial burden of Chinese farmers in a substantial way.

Premier Wen Jiabao presided over the meeting. The participants heard a report on the issue by the State Council's working group on the rural tax reform.

The meeting concluded that the rural tax reform is a very important decision made by the Central Committee of the Communist Party of China and the State Council. Since the launching of the reform in 2000, the reform has made certain achievements, boosted the economic and social development of the countryside and basically reached its preset goals.

However, there have emerged some new contradictions and problems during the reform, the meeting said. It urged all localities and government departments concerned to fully recognize the hardship and complexity of the reform.

The government reform at town and township levels, reform of compulsory education in rural areas, and financial reform at county and township levels are expected to continue, according to the meeting.

Early this year, the government canceled "agricultural specialties tax" and decided to cancel "agricultural tax" within five years, in a step-by-step way.