Favorable tax policies for small businesses will boost the economy and employment, said an article in Beijing Youth Daily (excerpts below).

The State Council has decided to waive added-value and turnover tax for small businesses whose monthly revenue is less than 20,000 yuan ($3,258) from Aug 1.

It's estimated that this policy will benefit more than 6 million small businesses that employ tens of millions.

For years, small businesses have struggled due to currency appreciation, increasing labor costs as well as the difficulty of financing.

While this is a welcome step, more must be done to ensure that these enterprises continue to flourish.