China to take more tax cut measures

BEIJING -- Chinese government plans new tax cuts to reduce the burden on businesses, support innovation and stabilize growth.

Tax cuts were approved Wednesday at a State Council executive meeting presided over by Premier Li Keqiang, after the government announced measures to reduce business costs in the first quarter.

Value-added tax will be simplified, more small and micro companies will enjoy income tax incentives, and pre-tax deductions for innovation-based tech companies will rise, according to a statement made public after the meeting.

Tax incentives for venture capital firms will expand, with pre-tax deduction of commercial health insurance nationwide and a package of tax-cuts due to expire by 2016 extended for another three years.

A government work report released in March promised around 350 billion yuan ($51 billion) of cuts to corporate taxes and with business fees cut by around 200 billion yuan in 2017.