China to lower tax burdens for small firms

China aims to maintain economic growth through lowering tax burdens for small firms and speeding up infrastructure investment, according to a State Council meeting chaired by Premier Li Keqiang on Wednesday.

China will further lower tax burdens for micro and small-sized enterprises to facilitate their growth, said a statement posted on the central government's website.

The Ministry of Finance cut corporate income tax by half for micro and small-sized enterprises with annual corporate income of no more than 60,000 yuan ($9,667) on January 1, 2012.

The 60,000 yuan upper limit will be further raised, and the policy, previously scheduled to end on December 31, 2015, will be extended to the end of 2016, the statement said.

The meeting also released plans for China's railway investment. The nation is expected to build over 6,600 kilometers of new rail lines this year.

Nearly 80 percent of the government's investment in railway construction will be applied to China's central and western regions.

The meeting noted that speeding up railway construction will also boost the country's urbanization and help millions of people get rid of poverty.

The shantytown renovation is also a crucial part of the government's efforts to improve living conditions for low--income urban residents.

In order to ensure sufficient money supply, a special division will be formed by China Development Bank, which will issue housing bonds.