Starting Jan 1, graduates who start their own business within three years after leaving school can receive tax breaks, as the government begins a preferential policy to encourage self-employment among college graduates, according to the Ministry of Education.

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The new step makes up for the shortage of employment-promotion policy for college graduates in China. Meanwhile, it covers students who launch their own business for the first time.

According to the policy, each individual enterprise will get a maximum of 8,000 yuan ($1,211) in annual reductions, including sales tax, personal income tax, urban maintenance and construction tax.