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China tax breaks to spur economy in border areas

(Xinhua)
Updated: 2008-10-31 10:00

BEIJING  -- China will adopt preferential fiscal and investment policies to boost economic development and trade in border areas, said the Ministry of Finance (MOF) on Thursday.

As of Nov. 1, residents who live in the border will be exempted from taxation of the daily necessities such as food and cloth costing in total no more than 8,000 yuan (1,171.3 US dollars) per individual in one day.

Fiscal departments at all levels of government will allocate funds to support enterprises that engage in small-amount trade in border areas as of Nov. 1. But the MOF didn't reveal how much money would be allocated.

The amount of the fund is expected to increase every year, and no limitation was set on the period, said the MOF.