China has announced tax-relief policies for parents rearing children under 3 years old, according to a State Council circular issued on Monday.

Starting Jan. 1, 2022, the individual taxable income of such parents can be reduced by a total of 1,000 yuan (157 U.S. dollars) per month for each baby, said the circular.

The deduction can be applied in full by one parent or can be split evenly, added the circular.

The policy is the implementation of a decision on improving birth policies to promote long-term and balanced population development, which was adopted by the Communist Party of China Central Committee and the State Council in July.