Tax holiday

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Related to Holiday, Tax: Tax rebate

Tax holiday

A reduced tax rate that a government provides as an inducement to foreign direct investment.

Tax Holiday

A temporary suspension of a tax, especially a sales tax. Jurisdictions declare tax holidays at certain times of the year on the theory that doing so will stimulate consumer spending and thereby induce economic growth. Some U.S. states routinely declare tax holidays before school begins each year, for example. Critics of tax holidays maintain that they deprive the jurisdictions of revenue and that their effect on growth is overstated.
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Eddy said tax holiday, tax allowance and import duty guarantee, economic area facility and investment guarantee are among the incentives demanded by foreign investors.
These incentives include, tax holiday, tax free zones, concession in import of inputs etc.
election results could mean for the "Fiscal Cliff," a possible deficit reduction, the "Grand Bargain," the payroll tax holiday, tax reform and healthcare reform-related compliance mandates.