In some developing countries, some big corporations are given tax holidays for some years when they set up businesses in those countries. The government sees the impact such investments would make as far reaching, hence the need for such incentive. On the contrary, they have failed to see the impact that small and medium scale businesses can make on the economy when given necessary aid.
Giving tax holidays to small businesses in their first few years of operation would not be a bad idea at all. But certain conditions may have to be put in place. For instance, how much impact is such business making or would make on the economy of the local community where it is for instance? Also, government may need to consider the number of people the business is employing or can employ if given such aid, etc. Such aid should be justifiable by the business owner to qualify.
The idea has to be considered in such a way that both the government and the small businesses will win at the end of it all.
Beyond 0% tax or not, government all over, particularly in Africa should create an enabling environment for small businesses to thrive!
Thanks for such a great response - I completely agree. Whether this is the right solution or not governments need to reduce the friction for small and medium sized businesses to get going and thrive.
You're welcome..thanks for initiating this thought-provoking discourse @thecryptofiend! Small and Medium scale businesses needs some 'fresh air' so they don't get chocked to death by the big companies and goverment regulations!