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tax holiday
(redirected from Tax Holidays)

   Also found in: Financial, Wikipedia 0.01 sec.
tax holiday
n
(Economics, Accounting & Finance / Banking & Finance) a period during which tax concessions are made for some reason; examples include an export incentive or an incentive to start a new business given by some governments, in which a company is excused all or part of its tax liability


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Tax holidays though simple to administer have shortcomings, for example, by exempting profits irrespective of their amount, tax holidays tend to benefit an investor who expects high profits and would have made the investment even if this incentive were not offered.
Critics say tax holidays are political gimmicks that fail to promote economic growth and simply shift the timing of purchases.
But with a budget crunch forcing repeated cutbacks in government spending on programs, personnel and other costs, New Mexico lawmakers almost certainly will take a serious look at whether to continue the annual tax holidays.
 
 
 
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