ENSURING THE FINANCIAL STABILITY OF ENTERPRISES DUE TO THE DEVELOPMENT OF THE BUDGET TAX AND INVESTMENT POLICY

Abstract

Many countries, developed and developing alike, offer various incentives in the hope of attracting investors and fostering economic growth. Yet there is strong evidence that calls into question the effectiveness of some tax incentives for investment, including in particular tax free zones and tax holidays. Indeed, ineffective tax incentives are no compensation for or alternative to a poor investment climate and may actually damage a developing country’s revenue base, eroding resources for the real drivers of investment decisions - infrastructure, education and security.