Tax holiday

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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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$5.5 million from one-week disaster preparedness sales tax holidays to encourage Floridians to be prepared for the hurricane season.
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 to exporters.
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.