China will broaden its tax credit rebates, postpone social security payments and loan repayments, roll out new investment projects and take other steps to support the economy, the State Council said yesterday.
Chinese policy-makers have pledged to step up support for the world’s second-biggest economy, which has encountered temporary fluctuation amid the latest COVID-19 flare-ups.
China would strive to bring its economic operations back onto a normal track with a package of targeted, forceful and effective measures, according to the State Council, China’s Cabinet.
“At present, the downward pressure on the economy continues to increase, and it’s very difficult for many market entities,” the State Council said after an executive meeting, chaired by Premier Li Keqiang.
Among the agreed new steps, the government will provide tax credit rebates to more sectors, raising annual tax cuts by more than 140 billion yuan (US$21 billion) to 2.64 trillion yuan.
China will also reduce some passenger car purchase taxes by 60 billion yuan, according to the meeting.
Authorities will postpone social security payments, including pension insurance premium payments, by small companies, individual businesses and some severely distressed sectors until the end of this year. The deferred payments are expected to reach 320 billion yuan this year.
Banks will also postpone repayments of some loans, including auto and consumer loans, by small firms and individuals in difficulties, the State Council said.
The national financing guarantee fund will boost its reinsurance businesses by more than 1 trillion yuan this year, it added.
China will also launch a number of new projects in water conservancy, transport and urban shantytown renovation, and will kick off some new energy projects.
The State Council also pledged to increase domestic and international passenger flights in an orderly way.