Threshold for 50 percent reduction to be set at 200,000 yuan, showing government's 'support'

China will make more small and micro businesses eligible for tax breaks in an effort to encourage innovation and boost employment at a time of downward economic pressure, officials at the State Council's executive meeting decided on Wednesday.

Small and micro businesses with annual taxable incomes below 200,000 yuan ($31,980) will be eligible for a 50 percent reduction of their business income tax, according to a statement released after the meeting, which was presided over by Premier Li Keqiang.