Tax Holidays

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Title: Tax Holidays

Essay Details:

Subject: Business

Author:

Date: February 11, 2017

Level: University

Grade: A

Length: 10 / 2954

Essay text:

Fiscal incentives are an essential component of many countries’ investment promotion strategies. However, there are two perceptions of the fiscal incentives. Firstly, there are supporters who argue that, under certain conditions, they increase investment, create jobs and other socio-economic benefits. On the other hand, opponents believe that fiscal incentives may not be the most suitable mechanism for attracting FDI and the cost of implementing these tax incentives outweigh the benefits. They believe that tax incentives may worsen problems like governance and corruption. According to Morriset and Pirnia of the Foreign Investment Advisory Service (FIAS), the most popular form of tax incentive for several developing countries has been tax holidays...

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