If the Federal Government can give 10 year tax holiday
to companies, why not give the same to workers?
According to the Tax Foundation, the first sales tax holiday
was offered on automobile sales in 1980 in the states of Ohio and Michigan (Joseph Bishop-Henchman and Scott Drenkard, 2017, "Sales Tax Holidays
: Politically Expedient but Poor Tax Policy," http://bit.ly/2PLNljE).
He likened them to old but healthy and wealthy patients still connected to intravenous tubes, thriving on tax holidays
and other government fiscal incentives.
In an interview, Finance Secretary Carlos Dominguez III said it was time the companies that have been enjoying these tax holidays
, some for as long as 40 years, be made to compete in the market without the benefit of financial assistance from the government.
Governments usually create tax holidays
as incentives for business investment.
Chua said income tax holidays
and special rates account for P86.25 billion of the revenue losses, while custom duty exemptions account for P18.4 billion.
Brandon Creighton, R-Conroe, would create a sales tax holiday
for firearms, ammunition and hunting supplies during the last weekend in August.
The sales tax holidays
usually last around three days.
The Federal Board of Revenue has received three tax policy proposals from the Board of Investment (BoI) for fixation of an investment threshold to grant tax holidays
to foreign investors, reduction in corporate income tax rate and cut in the standard rate of 17 percent sales tax.
As part of Ireland's accession the European Economic Community, precursor to the European Union, in 1973, it was forced to stop offering tax holidays
Sales tax holidays
are popular with consumers and have broad support among lawmakers, who have supported them to improve sales for retailers, help low-income consumers save money and promote economic growth.