China to cut social insurance contributions of businesses by 300 billion yuan

China expects to slash the social insurance contributions of enterprises by over 300 billion yuan (about US$44.6 billion) this year, an official said on April 4.

The incentive is part of China's efforts to reduce the tax burden and social insurance contribution of businesses by nearly 2 trillion yuan in 2019, said You Jun, vice minister of human resources and social security, at a press conference.

Employers will see at least 190 billion yuan less paid in basic aged-care insurance contributions, and 110 billion yuan in unemployment insurance and work injury compensation insurance premiums, he said, adding that private enterprises as well as small and micro businesses were among the top beneficiaries.

Last year, China reduced the tax and fee burden on enterprises and individuals by around 1.3 trillion yuan, official data showed.

The country aims to implement large-scale tax cuts and fee reductions this year to boost the vitality of market entities, increase urban and rural personal incomes and expand capacity for consumption.