China issues tax breaks to boost employment

BEIJING - Business startups and employers willing to hire the jobless will receive tax breaks as the Chinese central government looks to encourage employment amid the economic slowdown.

Businesses established by registered unemployed workers are allowed a maximum annual tax reduction of 9,600 yuan (1,559.56 U.S. dollars), according to a joint statement led by the Ministry of Finance on Tuesday.

Companies set up by new graduates, people who have been out of work for over six months and those living on government aid, as well as residents from zero-income families also qualify for the policy.

Firms that hire the jobless for over a year are able to enjoy an annual reduction of 5,200 yuan for every job opportunity provided, the statement said.

The move was a renewal of previous pro-employment measures that expired at the end of last year, with wider coverage, no restrictions on industries and simplified administrative procedures. The new policy will stay effective until Dec. 31, 2016.