The State Council has unveiled a new package of tax cuts totaling 550 billion yuan ($83.66 billion) for businesses this year to shore up support to smaller firms and sustain the momentum of the economic recovery.

  In its executive meeting on Wednesday, the Cabinet adopted measures to continue support to small and micro businesses, self-employed individuals and businesses in the advanced manufacturing sector.

  The meeting, chaired by Premier Li Keqiang, decided the favorable policies offered to smaller firms will be extended to cover self-employed individuals. For this year and next year, smaller firms and self-employed individuals will see their corporate income tax cut by half for the part of their annual taxable income that is less than 1 million yuan, according to a summary of the meeting.

  Meanwhile, the tax-free threshold in the value-added tax for smaller firms and self-employed individuals will be raised from the current monthly sales volume of 100,000 yuan to 150,000 starting April until the end of next year.

  The meeting also adopted steps to include manufacturers in sectors such as transportation equipment, machinery for electoral engineering, instruments and apparatus and pharmaceuticals into the list of advanced manufacturing firms that can enjoy the excess input VAT refund policies.

  Source: China Daily