China's Tax Break: A Boost for Families

The Chinese government has introduced a significant fiscal measure to support families by exempting childcare subsidies from individual income tax. This step, announced by the finance ministry on Wednesday, has taken effect retroactively from January 1.

The initiative is part of broader efforts to address demographic challenges, offering an annual 3,600 yuan subsidy for children up to the age of three. This move, effective from July, aims to alleviate financial burdens and encourage higher birth rates amid a declining population.

Authorities are optimistic that these fiscal incentives will spur more births and support young families, contributing positively to the country's demographic and economic landscape.

(With inputs from agencies.)