China Announces Tax Breaks And Subsidies To Boost Employment, Agriculture As Growth Slows

SHANGHAI — The Chinese government on Friday announced tax breaks and other measures aimed at creating jobs and promoting entrepreneurship, as the country seeks to boost economic growth, which slowed to 7 percent in the first quarter of 2015, its slowest rate in six years.

A circular published by China’s cabinet, the State Council, on Friday — the country’s Labor Day holiday — acknowledged that China faced “pressure in creating more jobs.” It said the nation needed to implement “more pro-active employment policies,” according to the official Xinhua news agency. The circular said the government should encourage “mass entrepreneurship and startups, so as to foster a new engine of economic growth.” Separately, the Communist Party’s ruling Politburo also called on Friday for increased public spending and further tax cuts, though it did not go into detail.

The State Council pledged easier access to loans for start-ups and small enterprises, along with tax breaks for migrant workers who want to set up businesses in their home towns, and incentives for university graduates to work in less developed parts of the country, according to Reuters.  It offered tax breaks to businesses that employ people who had been jobless for more than six months (compared to one year under previous policies) and it said companies that created significant numbers of jobs would receive priority in bids for large-scale projects.

Full article found here:

Leave a Reply