China will make further tax cuts worth over 60 billion yuan ($9.5 billion) to drive innovation and entrepreneurship and boost the development of small and micro businesses, the State Council said Wednesday.

"The move aims to reduce the cost for innovation and entrepreneurship, energize small and micro businesses, and spur job creation," said a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.

"The per unit value of newly-purchased R&D instruments and equipment eligible for one-time tax deduction will be raised from 1 million to 5 million yuan. The annual taxable income threshold of small and micro businesses eligible for halved income tax will be raised from 500,000 to 1 million yuan," the statement said.

These two measures will be effective from Jan. 1, 2018 to Dec. 31, 2020, it said.

The tax cut is part of efforts to implement the requirements set out by the Central Economic Work Conference and the Government Work Report. 

Photo: Xinhua