BEIJING, July 25 (Xinhua) -- China's Premier Wen Jiabao recently gave instructions on the establishment and development of a fair and well-regulated tax system.

    Wen said tax collection performed well in the first half year and is so significant to the country's economic and social development that no effort should be spared to advance tax reform.

    Official figures show China's tax revenue excluding tariffs and agricultural tax rose to a record high of 3.0866 trillion yuan (381 billion U.S. dollars) in 2005, up 20 percent year on year, and 898.8 billion yuan (112.3 billion U.S. dollars) in the first quarter of this year, up 18.9 percent.

    To balance rural and urban development, China rescinded its 2,600-year-old agricultural tax this year. China is currently mulling over several new initiatives, including a reform of its resources tax, a proposal to standardize corporate income tax for domestic and overseas firms and a revision of the tax on the use of farmland for nonagricultural purposes.

    Wen also said China should strengthen IT management and tax revenue collection capacity. Enditem