China to offer fiscal support for service sector

Last Updated: Tue, Feb 12, 2013 06:50 hrs

Beijing, Feb 12 (IANS) The Chinese government will provide subsidies and rewards for several types of business projects in the service sector, said authorities.

Funds will be allocated from the central coffers to benefit housekeeping, e-commerce, resource recycling, second-hand car trade and other businesses that can either make people's life more convenient, facilitate distribution of goods or promote a green economy, said an official document.

Subsidies and rewards to each of those business projects should not exceed 30 percent of its total investment, reported Xinhua citing the document.

Those projects can also receive subsidies on their bank loan interest payments at a rate no higher than the benchmark one-year lending rate for no longer than three years, it said.

China aims to boost the development of the service sector in a bid to make its economy driven more by domestic consumption than by industrial investment and exports.

The proportion of the value-added output of the service sector in the country's gross domestic output will be increased by 4 percentage points by 2015 from 2010, according to government plans.

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