China announces boosts to economic vitality

Tax breaks for the small and micro firms will be extended till the end of 2016, China's cabinet, the State Council, announced on Wednesday.

The cabinet is also considering raising the tax threshold significantly above the current level of 60,000 yuan. The statement that followed Wednesday's cabinet meeting said small and micro businesses are vital to employment and revitalizing the market.

The cabinet decided in 2011 that a company with annual taxable income under 60,000 yuan (just under 10,000 U.S. dollars) will have its business income tax halved during 2012-2015.

Officials attending Wednesday's cabinet meeting also said China will improve macro-control in 2014 with measures to stimulate enterprises, expand domestic consumption and boost employment. There will also be fiscal help in coping with unexpected challenges.