Clearer, accessible information on incentives could also help investors make quicker decisions and countries attract untapped investment opportunities. The research shows one challenge is that too many agencies are involved in granting and administering investment incentives. The administration of other tax incentives, such as exemptions on customs and import duties, are spread even more widely across different government authorities. The OECD says this “risks generating an uneven playing field”, where smaller investors are discouraged by the significant time and resources needed to understand incentives. Tax incentives are often used to make up for weaknesses in the investment environment of developing countries in particular.

Source: The North Africa Journal November 13, 2023 13:57 UTC