Tax Concessions

Tax Concessions

 

complete or partial exemptions from taxes enjoyed by legal and physical persons.

Tax concessions are established by the state. Both in precapitalist formations and under capitalism, tax concessions have been enjoyed primarily by representatives of the ruling classes. In many capitalist states, for example, high nontaxable minimums and special additional deductions are used in calculating the inheritance tax.

In the socialist countries, such factors as form of ownership, size and source of income, and personal taxpaying category are taken into account in determing tax concessions. In the USSR, for example, cooperative enterprises and kolkhozes are entirely exempt from taxes on certain types of income. The income tax provides for a nontaxable minimum income of up to 60 rubles a month. In 1972, in a number of regions of the country where the minimum wage of production and office workers was raised to 70 rubles a month, the nontaxable minimum was also raised to this level and the tax rate on wages up to 90 rubles a month was decreased on the average by more than one-third.

Also exempt from taxation are pensions; awards for discoveries, inventions, and efficiency proposals of not more than 1,000 rubles; awards that accompany Lenin, State, and Lenin Komsomol prizes; and gains acquired through state bonds and lotteries. Tax concessions are also given to citizens with large families and to invalids. Certain objects of taxation, such as unusable parcels of land and certain types of property or building, are tax exempt. In a number of cases, tax concessions are established to stimulate particular types of production or manufacturing.

G. L. MAR’IAKHIN

References in periodicals archive ?
The opposition's objection to the three mentioned budget proposals will not be easy for the government to handle, especially those related to tax recoveries on offshore assets and tax concessions to sports franchises.
She said that 30pc tax concessions had been given to billionaires in the current budget but there was nothing for the poor.
He added: "I have made a case to the Department of Finance to retain the tax concessions that are there and in addition to that to consider a Paye refund to the owners.
Ten years ago I was advised to opt out of Serps, and take out a personal pension plan with tax concessions. Seeing the low returns on my plan, should I opt back into Serps, and if so, would this mean repaying the tax concessions already received?
Tax concessions, reduced car parking charges and better transport links with local communities are among the items on the agenda of the Travel Plans seminar later this month.
Britain's charities are expected to miss out on a pounds 130 million bonanza this year because many people do not make the most of special tax concessions.
The merger agreement between Hess and the Venezuelan firm had to be ratified by the USVI Senate because of tax concessions.
The wealthy with the highest incomes have traditionally been insulated from taxation by successive governments with tax concessions and blind eyes being turned, but the new government seems set to challenge the culture of impunity.
The ordinances were promulgated hours before parliament was scheduled to meet; the prime minister announced the scheme and tax concessions after a short meeting of the economic advisory committee, which has no legal constitutional status.
He also charged the government with extending tax concessions to corporate sector while common people and farmers suffered due to price rise and agrarian crisis.