China to give tax brakes to boost employment

China to give tax brakes to boost employment

Tax privilege will be given to more registered jobless people who intend to establish their own business, including laid-off workers, college graduates, migrant workers, people experiencing employment difficulty, zero-employment families, and urban residents receiving the government minimum living allowances, a policy paper released by the Ministry said.

New college graduates starting their own businesses will also be granted favourable tax treatment, it said.

Applications for the tax preference will be accepted from January 1, 2011 to December 31, 2013, and specific policies will be jointly formulated by the Ministry of Finance, State Administration of Taxation, Ministry of Human Resource and Social Security, and the Ministry of Education, Xinhua news agency quoted the paper as saying.

China's urban unemployment rate stood at 4.1 per cent at the end of September, with 9.05 million urbanites registered as unemployed, according to data from the Ministry of Human Resources and Social Security.

At the end of 2009, China's registered unemployment rate was 4.3 per cent. The government aims to keep the urban registered unemployment rate below 4.6 per cent this year.