The tax break for small and micro-sized enterprises, which usually accept interest rates 10 to 30 percent above the guideline rate, will ease the credit crunch and inject vigor into job-generating small businesses, Zhang added.

Statistics from SAT showed that the tax break will reduce the tax burden for small and micro-sized enterprises by 20 billion yuan.

Analysts believe that the structural tax reductions do not simply mean cutting tax rates, but are a demonstration of the government's determination to secure stable growth and restructure the economy amid a continuous economic slowdown and increasing risks in the financial market.

"The structural tax reduction will significantly boost economic growth and optimize the country's economic structure," said Liu Shangxi, deputy head of the Fiscal Science Research Institute under the MOF.

China's economy has been stuck in a protracted slowdown, easing to 7.5 percent in the second quarter from 7.7 percent in the first three months.

The government has adopted a different approach by not launching a one-off fiscal and monetary stimulus package, but instead introducing a set of market-oriented reforms to boost the economy.

As part of the reforms, the structural tax cuts serve as an important role in "developing strategic and emerging industries, energy-saving businesses and the service sector by giving enterprises more access to credit and alleviating their tax burdens," said Liu.

In the long run, the structural tax cuts will provide an equal institutional environment for healthy economic development, he said.