TAX CONCESSION Meaning and
Definition
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A tax concession refers to a financial arrangement or benefit provided by the government to certain individuals or businesses, resulting in a reduction or exemption from paying certain taxes. It is a form of tax relief or incentive offered to promote economic growth, investment, or social well-being.
Tax concessions can take various forms, such as tax deductions, credits, exemptions, or allowances. These concessions are typically granted through legislation or special provisions within tax codes, enabling eligible entities to lower their tax liabilities. The primary purpose is to encourage specific behaviors or activities deemed beneficial to the economy.
For example, governments may offer tax concessions to businesses that invest in certain industries or regions, with the aim of stimulating economic development and job creation. Similarly, individuals may receive tax concessions for engaging in desirable activities such as saving for retirement, purchasing a home, or supporting charitable organizations.
Tax concessions can vary in scope and magnitude, depending on the jurisdiction and the specific objectives being pursued. They can be temporary or permanent, and may apply to specific types of taxes such as income tax, property tax, or sales tax. Governments carefully design tax concessions to strike a balance between stimulating desired behaviors and maintaining sufficient tax revenue for public services and infrastructure.
Overall, tax concessions play a critical role in shaping economic and social outcomes by providing a financial advantage to eligible individuals and businesses, thereby influencing their decision-making and encouraging desired actions.
Common Misspellings for TAX CONCESSION
- rax concession
- fax concession
- gax concession
- yax concession
- 6ax concession
- 5ax concession
- tzx concession
- tsx concession
- twx concession
- tqx concession
- taz concession
- tac concession
- tad concession
- tas concession
- tax xoncession
- tax voncession
- tax foncession
- tax doncession
- tax cincession
- tax ckncession
Etymology of TAX CONCESSION
The term "tax concession" consists of two words: "tax" and "concession".
1. Tax: The word "tax" originated from the Latin word "taxare", meaning "to assess or to evaluate". It was later adapted into Old French as "taxer", which referred to "setting a value or assessing a payment". Over time, this term evolved into the English word "tax", which denotes a compulsory financial charge or levy imposed by the government on individuals or organizations.
2. Concession: The word "concession" comes from the Latin word "concessio", derived from the verb "concedere", meaning "to yield or to grant". In English, "concession" refers to an act of granting or yielding something, often in response to negotiation or demand.
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