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 ?
ISLAMABAD -- Federal Minister for Finance, Revenue, and Economic Affairs Rana Mohammad Afzal Khan Wednesday said that the government had provided the tax concessions on setting up new industries/ businesses including exemption from sales tax in respect of capital equipment including plant, machinery, equipment and accessories for the projects and development of Special Industrial and Economic Zones.
Possibility of implementation of certain tax concessions was spoken about as well.
In recognition of the unique aspects of Defence Service, a number of facilities and benefits in cash and kind are admissible to Defence Service personnel, including tax concessions available in Canteen Stores Depot, concession vouchers for travel in Railways and by Air, apart from compensation granted by way of various allowances for unique risks and hardships borne by the Defence personnel.
The company will manufacture one ton vehicles in the country and the project is expected to get tax concessions under auto policy.
Finger further recognized that such growth was remarkable as last year FBR had experienced revenue dip due to the tax concessions offered in the agricultural package, zero rating of inputs of five export-oriented sectors and the government's decision of not passing on the effect of the increase in POL prices.
A tax official said the tax concessions are increasing investment in farming.
Seth Muhammad Akbar said the government should immediately take necessary measures to strengthen cotton production in the country and called for tax concessions on all inputs such as water, electricity, seed, pesticides and fertilizers to enable the cotton growers to compete regionally.
The FBR also had statutory powers to give unlimited tax concessions, waivers and exemptions without parliamentary approval.
The Reserve Bank of Australia (RBA) has urged the government to reconsider tax concessions for property investments.
LESSER U NION finance minister Arun Jaitley is likely to provide tax concessions in the forthcoming Budget to attract corporate funds for the Swachh Bharat Abhiyan and Clean Ganga campaign.
Tax authorities informed the CEOs that it is not government's policy to give new exemptions or tax concessions as the FBR is committed to phase out exemption through SROs in three years period.