China's tax department will cut tax on individuals and enterprises next year to adjust its economic structure, the International Finance News, an affiliated newspaper of People’s Daily, reported Friday.

The starting point of personal income tax and labor compensation tax is expected to rise with the latter from the current threshold 800 yuan ($117) to 2000 yuan ($292).

The new taxation policy will also benefit the medium-small sized companies, service sector and high-tech companies, and may give impetus to the domestic economic development, the report said.