A tax incentive is an aspect of a country's tax code designed to incentivize or encourage a particular economic activity by reducing tax payments for a company in the said country. Tax incentives have traditionally been used by governments as tools to promote a particular economic goal. They are preferential tax treatments that are offered to a selected group of taxpayers and take the form of exemptions, tax holidays, credits, investment allowances, preferential tax rates and import tariffs (or customs duties), and deferral of tax liability.
Published in Chapter:
Economic Measures for Mitigation of the Consequences of COVID-19: Evidence From Serbia
Darko Marjanović (Institute of Economic Sciences, Serbia) and Ivana Domazet (Institute of Economic Sciences, Serbia)
Copyright: © 2023
|Pages: 20
DOI: 10.4018/978-1-6684-5950-8.ch008
Abstract
The outbreak of global health and, consequently, the economic crisis caused by the COVID-19 pandemic interrupted five years of positive economic trends in Serbia. To preserve economic stability, the government of Serbia took appropriate measures and provided support to micro, small, and medium enterprises. The chapter aims to evaluate the packages of economic measures introduced to reduce the negative consequences caused by the pandemic. The research covers the period from 2015 to 2022 (i.e., before and during the crisis and after the adopted economic measures). The analysis is based on officially adopted economic measures with a combination of macroeconomic statistical data and forecasts from the Ministry of Finance of the Republic of Serbia and the Fiscal Council of the Republic of Serbia. The results of the research indicate that the crisis caused by the COVID-19 virus did not cause a significant drop in economic activity in the Republic of Serbia, primarily due to the extensive package of aid to the economy, which amounted to 12.5% of GDP.