Amendments to the controversial Highway Law have been passed by the National People's Congress Standing Committee allowing the central Government to impose a fuel tax on all commuters.
Xinhua said legislators yesterday passed the amendments by 'majority votes' clearing the final hurdle for the introduction of the new tax.
The Standing Committee voted down the amendments last April by one vote after some members expressed concern that it would add an extra burden on farmers.
They would be taxed when buying fuel for various farm machines even though they were confined to land and did not use the highways.
Earlier the legislators who represented local interests opposed the fuel tax saying it would hurt local governments financially.
Finance Minister Xiang Huaicheng told the legislators that the Government planned to offset the impact of the fuel tax on farmers by compensating them according to the sizes of their farm plots.