Jan 242016
Fiscal and non-fiscal incentives have, for many years, formed an integral part of the government’s efforts to promote domestic and foreign direct investment (FDI). The question that has always been raised is whether these incentives — particularly the tax or fiscal incentives — are costing the government more compared to the benefits that the FDI brings. Until recently, there was no system to properly account for the tax incentives granted to these businesses, and the government has been unable to determine the magnitude of its exposure on these incentives.