BEIJING (Reuters) -China will adopt a package of targeted, forceful and effective measures to support the economy, state television quoted the cabinet as saying on Monday, as downward pressure intensifies.

FILE PHOTO: People wearing face masks to prevent the spread of the coronavirus disease (COVID-19) walk across a street near a shopping mall in Beijing, China April 15, 2022. REUTERS/Tingshu Wang

China would strive to bring its economic operations back onto a normal track, the cabinet said.

“At present, the downward pressure on the economy continues to increase and it’s very difficult for many market entities,” the cabinet was quoted as saying after a regular meeting.

Chinese policymakers have pledged to step up support for the world’s second-biggest economy, hit by COVID-19 outbreaks that have prompted stringent restrictions, causing huge disruption.

The government will provide tax credit rebates to more sectors, and raise annual tax cuts by more than 140 billion yuan ($21.06 billion) to 2.64 trillion yuan, the cabinet was quoted as saying.

China will also reduce some passenger car purchase taxes by 60 billion yuan, state media said.

Authorities will postpone social security payments, including pension insurance premium payments, by small firms, individual bushiness and some severely distressed sectors to the end of this year, the cabinet said.

The deferred payments are expected to reach 320 billion yuan this year, it added.

Banks will postpone repayments by some loans, including auto and consumer loans, by small firms and individuals that face difficulties, the cabinet was quoted as saying.

The cabinet also pledged to increase domestic and international passenger flights in an orderly way.

($1 = 6.6470 Chinese yuan renminbi)

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