BEIJING -- China will extend tax breaks on Wednesday to encourage banks and insurers to support agriculture.

"The continued preferential policy is critical to food security, increasing farmers' incomes and modernizing the sector," said a statement released after a cabinet meeting chaired by Chinese Premier Li Keqiang.

Bank's interest revenues from small loans to farmers will be exempt from sales tax and corporate income tax shall be payable only on 90 percent of such revenues

The meeting decided that the definition of the above-mentioned small loans shall be between 50,000 to 100,000 yuan, instead of less than 50,000 yuan as previously defined.

Insurers' premium revenues from crop and husbandry insurance shall enjoy a 10 percent discount in calculating payable corporate income tax.

The three-percent discount on sales tax payable by county-level financial institutions from insurance shall be extended to the end of 2016.